Friday, March 9, 2012

NCC Bought by Reliance Life Insurance for Rs. 7.38 Crore

AVS Raju, Chairman, NCC Ltd.
By Staff Reporter:

Infra player NCC Ltd (BSE: 500294, NSE: NCC) on Wednesday witnessed a significant buy of 12.97 lakh shares by Reliance Life Insurance Company Ltd, amounting to 0.51% of the total shares in the company.

The buy was executed in NSE at Rs. 56.98 a share.

Earlier, StockExplain had reported about a significant sell in NCC Ltd on 6th February, by one of its early backers, Norges Bank, an FII, for Rs. 21.32 crore. The Norges’ sell involved 34 lakh shares or 1.33%, and was executed at Rs. 62.70 a share.

Post this sell by Norges Bank, NCC had slid by around 20%, before it found good support at Rs. 50, and bounced back.

Interestingly, the slide was in spite of the PE fund, Beacon India Private Equity Fund, buying the whole of what Norges Bank sold.

However, in Wednesday’s purchase by Reliance Life Insurance, there was no identifiable counterparties to the buy, which means that the buyer has probably picked up the shares from the wider market.

Wednesday's buy is an accumulation for Reliance Life Insurance as it already holds 58.11 lakh shares of NCC which is around 2.26% of the company.

NCC is backed by PE funds like Blackstone and ChrysCapital, as well as celebrity investor, Rakesh Jhunjhunwala.

It will be interesting to watch the calls taken by other large investors in Nagarjuna Construction Company (NCC), in the days to come.

Large shareholders in NCC include  Blackstone GPV Capital Partners, Warhol Ltd (of ChrysCapital Group), Citigroup, celebrity investor Rakesh Jhunjhunwala, as well as several mutual funds & insurance majors of India like Birla Sun Life Insurance, ICICI Prudential Life Insurance, DSP BlackRock Insurance, Bajaj Allianz Life Insurance, Aviva Life Insurance, & HDFC Infrastructure Fund.

On Wednesday, NCC closed the trade at Rs. 56.95, up by 2.34%.

Thursday was a holiday in India to celebrate Holi Festival, and the market will reopen on Friday.

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