Sept. 27--BANGALORE -- Life Insurance Corporation of India (LIC), the largest shareholder in India's second largest software exporter Infosys Ltd, has reduced its stake in the company to about 5%, according to a regulatory filing.
In a filing to the stock exchanges, state-run LIC said it sold 11.6 million shares in Infosys, representing a 2.02% stake, in the open market. At the closing price of Infosys shares on Thursday, the sold shares would be valued at about Rs.3,500 crore.
After the share sale, LIC holds 28.7 million shares in Infosys.
In the first three quarters of 2012-13 financial year, LIC had consistently increased its shareholding in Infosys, but during the March quarter cut its stake by 1.28% to about 6%. In the June quarter, LIC again raised its stake in Infosys to about 7% and bought 4.38 million shares.
In June, Infosys recalled its founder N.R. Narayana Murthy to lead a turnaround in the declining fortunes of the company, which in the last two years has consistently lost market share to rivals Tata Consultancy Services Ltd and Cognizant Technology Solutions Corp.
Bangalore-based Infosys's shares, which have risen by more than 30% since Murthy's comeback in June, closed marginally higher at Rs.3,013.35 each on Thursday on BSE.