LIC Ups Its Dose In Dr Reddy’s With Stake Hike To 10.268%

Stake hike reflects strategic confidence

Life Insurance Corporation of India (LIC) has raised its shareholding in Dr Reddy’s Laboratories from 9.33% to 10.268%, as per a recent stock exchange filing. The increase was achieved through open market purchases between July 13 and October 13, 2025. This marks a strategic reinforcement of LIC’s exposure to the pharmaceutical sector, which has shown resilience amid global economic uncertainties.

Dr Reddy’s, known for its strong generics portfolio and global footprint, remains a key player in India’s healthcare exports and domestic drug supply.

Pharma sector remains a defensive bet

LIC’s move comes at a time when institutional investors are gravitating toward defensive sectors like pharmaceuticals, given their stable cash flows and global demand. Dr Reddy’s has recently expanded its product pipeline in oncology and biosimilars, while maintaining strong performance in North America and emerging markets.

Key highlights from the filing

- LIC increased its stake in Dr Reddy’s Laboratories to 10.268%  
- Previous holding stood at 9.33% before the latest acquisition  
- Shares were acquired via open market between July 13 and October 13, 2025  
- The move reflects LIC’s bullish stance on the pharma sector  
- Dr Reddy’s continues to expand its global generics and biosimilars portfolio  
- The company maintains strong presence in U.S., Europe, and India

Market reaction and outlook

Following the disclosure, Dr Reddy’s stock saw mild gains, with analysts viewing LIC’s stake hike as a vote of confidence in the company’s long-term growth prospects. The pharma major is expected to benefit from upcoming product launches and regulatory approvals, while LIC’s increased holding may influence future institutional sentiment.

Sources: Moneycontrol, BSE India, Business Standard, Economic Times