The Life Insurance Corporation of India has increased its shareholding in Bata India from 57,48,071 to 64,36,692 equity shares. With this, its stake in the paid-up share capital of the company has gone up from 4.472 percent to 5.008 percent.
Shares of Bata India closed marginally higher at ₹ 1428.00 apiece, up 0.68 percent on Monday. Meanwhile, LIC’s shares were closed at ₹ 544.95 apiece, up 1.98 percent, on the National Stock Exchange (NSE).
Part of the Bata Shoe Organization, Bata India is one of the largest retailers and manufacturers of footwear in India. With a market capitalization of ₹ 18,230 crores, it is a mid-cap company. It has a low return on equity of 5.77 percent, but an ideal debt-to-equity ratio of 0.95.
The state-owned insurer said that its investment in Bata was part of its investment function and it happened as an open-market purchase at an average price of ₹1569.33. The purchase took place between January 3, 2022, and March 29, 2023, the insurer added.
Bata is also a preferred stock among mutual funds, which cumulatively hold a 23.96 percent stake in it. A few names include ICICI Prudential A/C Mutual Fund, PGIM India Trustees Private Limited A/C Mutual Fund, Nippon Life India Trustee Ltd-A/C Mutual Fund, DSP Mutual Fund and so on.
The company reported a 7 percent increase in its consolidated revenue to ₹ 900.21 crores in the October to December quarter of 2022, as compared to ₹ 841.3 crores reported in the corresponding quarter last year. Its profit increased by 15.03 percent during the same period from ₹ 72.32 crores to ₹ 83.19 crores.
Written by Simran Bafna
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