India's largest Life Insurer, Life Insurance Corporation of India (LIC), has hiked its stake in Infosys to 7.24% by purchasing additional 2.32% shares in the company so far this financial year. The company held 4.92% stake in Infosys at the beginning of the current fiscal on April 1, 2012.
At current market price of Rs 2350 the LIC's stake is worth around Rs 9700 crores which is highest among all the institutional investors in the company. Besides LIC, a number of other large investors also hiked their stake in Infosys during 2012. These include foreign funds like Oppenheimer, Franklin Templeton, Aberdeen and Vanguard.
Renewed interest of large institutional investors in the company seems justified considering the undervaluation, under ownership and under performance of the company since past one year. Infosys has one of the highest governance standard, best quality management and superior return history. Institutional investors seems to be taking advantage of negative sentiments around the company and accumulating large number of stock at lower levels.
Infosys is also one of our top contra bets for 2013. Read the full analysis below on contrarian stocks to bet on in 2013.