LIC reduces shareholding in MOIL to 6.9% from 9%

State-run Life Insurance Corporation (LIC) of India has reduced its shareholding in MOIL Ltd., the largest producer of manganese ore in the country, by over 200 bps, the company told the stock exchanges in a regulatory filing on Thursday. The market capitalisation of the company is Rs 5,083.06 crore.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Corporation’s shareholding in "MOIL LTD.” has diluted from 1,83,38,326 to 1,41,02,808 Equity Shares, decreasing its shareholding from 9.012 per cent to 6.931 per cent of the paid-up capital of the said Company," LIC said in a stock exchange filing.

Government holds 64.68 per cent stake in MOIL. Now, LIC owns 6.9 per cent stake in the company, followed by MFS International New Discovery Fund, which owns a 3 per cent stake.

Headquartered in Nagpur, the state-owned company has 11 mines in Maharashtra and Madhya Pradesh. The ore extracted is used for the production of manganese metals and alloys, whereas refined manganese dioxide is often used as a supplement in cattle feed and fertilisers.

Customers of MOIL primarily consist of steel companies, processors and ferroalloy producers engaged in the business of ferroalloys production. 

Earlier in the day, MOIL shares surged over 13 per cent on Thursday after it was disclosed that Quant Mutual Fund (MF) had acquired 1.1 million equity shares of the company via open market on Wednesday.

On October 11, Quant MF Gilt Fund purchased 1.1 million equity shares, representing 0.54 per cent of total equity of MOIL, via block deal on the NSE, the exchange data showed. The mutual fund bought shares at a price of Rs 226.80 per share.

Shares of the state-owned MOIL were trading at Rs 250.15, up by 9.14 per cent, at 1.45 PM.

Today's surge has also taken the stock to a 52-week high. Earlier, the stock had hit a record high of Rs 295 touched on December 15, 2010. For 2023, the stock is up over 60 per cent.

So far on October 12, around 1 crore shares exchanged hands at both the exchanges versus 13 lakh equity shares on a-week average, stock exchange data showed. On one-month average basis, around 8 lakh equity shares exchanged hands at the NSE and BSE.

In July, the Ministry of Steel said MOIL has seen record quarterly production of 4.36 lakh tonne in the first quarter of FY24, up 35 per cent compared to the corresponding period of last year.

MOIL recorded its best-ever production of 1.5 lakh tonne in the month of June, surpassing all previous records for its monthly figures. This achievement highlights the company’s continuous efforts to enhance operational efficiency and productivity.

The company witnessed its strongest-ever sales performance in the first quarter of the current financial year, registering sales of 3.96 lakh tonne, up 39 per cent over the corresponding period of last year.

MOIL has also recorded the highest production of electrolytic manganese dioxide during this quarter. EMD is a 100 per cent import substitution product, used mostly for pharmaceuticals and manufacturing of batteries.