LIC raises stake in Asian Paints to 7% via open market. Details here

 LIC Shareholding: Life Insurance Corporation of India (LIC) raised its stake in blue-chip firm Asian Paints to seven per cent, the state-run insurer informed via an exchange filing on Tuesday, December 10. LIC, India's biggest domestic institutional investor (DII), held a 6.6 per cent stake in the leading paints manufacturer at the end of the September quarter of FY25.

"...this is to inform that the Life Insurance Corporation of India has increased its shareholding in equity shares of Asian Paints from 4.79 crore to 6.72 crore, i.e., 5.001 per cent to 7.010 per cent of the paid-up capital..." said LIC in its regulatory filing to the stock exchanges on Tuesday, December 10.

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 LIC shareholding in Asian Paints

LIC’s shareholding in the paint major rose by 2.009 per cent through open market purchases made between January 1, 2024, and December 9, 2024, at an average ₹2,891.25 per share. The additional shares, amounting to 1,92,74,225, now make LIC's total holding 6,72,40,527 shares of the company's paid-up equity capital.

Asian Paints, India’s largest home decor firm with a market capitalisation of ₹2,30,015.63 crore, is a dominant player in the paints and coatings industry. The company’s product portfolio includes decorative paints, waterproofing solutions, adhesives, modular kitchens, and sanitary ware.

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LIC noted that the acquisition is part of its investment strategy in the ordinary course of business and does not involve any related-party transactions. LIC's stake rise comes when Asian Paints navigates challenges posed by a subdued urban demand environment and high cost of raw materials.

Asian Paints Q2 Results

Asian Paints reported a nearly 42.4 per cent year-on-year fall in consolidated net profit to ₹694.64 crore during the September quarter of FY25. The company earned a profit of ₹1,205.42 crore in the corresponding quarter last year. Revenue from sales for the quarter also declined 5.3 per cent year-on-year (YoY) to ₹8,003.02 crore from ₹8,451.93 crore in the same quarter last year. 

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’The paint industry faced a subdued demand environment during the quarter. Domestic Decorative coatings segment volumes declined marginally, while overall domestic coatings revenue declined by 5.5 per cent for the quarter, impacted by muted consumer sentiments and extended rains and floods in some parts of the country," said Amit Syngle, Managing Director and CEO of Asian Paints.