LIC reduces its stake in National Fertilizers by 2%, bringing down its holding from 7.26% to 5.20%. The transaction occurred between October 2023 and January 2025, as the company sees muted stock performance and posts a net profit for Q2FY25.
Life Insurance Corporation of India (LIC), India’s largest domestic institutional investor, has reduced its stake in National Fertilizers Limited (NFL), as confirmed by a filing from the company. The insurer, which had previously held 7.26% of NFL, sold over 2% of its shares, dropping its holding to 5.20%.
LIC sold 1,00,82,326 shares, reducing its stake in the company from 3,56,02,539 shares to 2,55,20,213 shares. The transaction occurred in multiple tranches between October 2023 and January 2025.
As a result of the stake reduction, NFL’s stock price declined by 0.81% on January 20, 2025, with shares trading at ₹109.65, down from ₹110.55 in the previous session.
National Fertilizers Limited, a public sector undertaking (PSU), is known for its manufacturing of fertilizers, including its entry into the production of nano-liquid urea. This development marks a significant shift in the company’s strategy, as it moves towards more sustainable and efficient agricultural solutions. NFL recently announced its entry into nano urea production at its Nangal plant, aiming to produce 1.5 lakh bottles of 500ml each per day.
NFL’s stock has seen muted movement over the past year, with a modest 1.6% rise as of January 17, 2025. The company had seen a 52-week low of ₹83 in March 2024 and a high of ₹169.95 in July 2024. In its latest financial results, National Fertilizers posted a consolidated net profit of ₹12.07 crore for Q2FY25, a significant turnaround from a loss of ₹87.10 crore in the same quarter the previous year.
This move by LIC highlights a shift in its investment strategy, as it continues to adjust its portfolio in response to evolving market conditions.
