LIC raises stake in Navin Fluorine International by 0.24%, now holds over 5%

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Life Insurance Corporation of India (LIC) has increased its stake in Navin Fluorine International, one of the largest Indian manufacturers of speciality fluorochemicals, by about 0.24% through open market. The insurance behemoth disclosed in a regulatory filing on Tuesday that it bought 1.21 lakh shares of Navin Fluorine International on January 08 at an average price of ₹3,630.39 apiece. As a result of this transaction, LIC's overall stake in Navin Fluorine International crossed over 5%, reaching 5.04%.

Also Read: LIC-backed multibagger small-cap stock hits record high Navin Fluorine International primarily focuses on fluorine chemistry, producing refrigeration gases, chemicals, inorganic bulk fluorides, and speciality organofluorines. It also offers contract research and manufacturing services. The company's shares have been on a downward trend since May 2022, owing to weak demand and elevated Chinese exports.

Over the last nine months, including January, the stock has fallen from ₹4,668 per share to the current value of ₹3,504, losing 25% of its value. Despite this substantial decline, the stock has retained a gain of 415% over the last five years and an impressive 6265% over the last decade. In a recent note, global brokerage firm Jefferies said it expects a slowdown in company capex until the new MD establishes priorities after taking office.

Leadership turnover remains elevated with the recent departure of the Head of Sustainability, it said. Given persistent demand challenges in the first half of CY24, the brokerage foresees a gradual scale-up of Navin's new agrochemical facility, where 50% of the capacity remains uncontracted. It anticipates ongoing delays in delivery schedules and expects a normalisation in