Shares of Dr. Reddy’s Laboratories rallied more than 4% on Thursday after Life Insurance Corporation of India (LIC) announced an increase in its stake in the pharmaceutical giant.
In a regulatory filing, LIC disclosed that it purchased 1.67 crore shares of Dr. Reddy’s Laboratories through open market transactions between October 28, 2024, and June 3, 2025. This move raised its holding from 6.204% to 8.216%, reinforcing LIC’s confidence in the pharma major’s growth trajectory.
Before the acquisition, LIC owned 5.17 crore shares, which has now increased to over 6.85 crore shares, translating to a 2.012% rise in its ownership.
Consistent Stake Accumulation
LIC has been steadily increasing its stake in Dr. Reddy’s Labs over the past three quarters—from 5.6% in September 2024, to 6.5% in December, and further to 7.19% in March 2025, before crossing the 8% mark this month.
Strategic Collaboration
In a separate announcement, Dr. Reddy’s Laboratories revealed a global collaboration and licensing agreement with Alvotech, a biotech company, to co-develop a biosimilar version of Keytruda (pembrolizumab). This cancer immunotherapy drug had global sales of $29.5 billion in 2024.
Stock Performance
The LIC stake boost has added to the bullish sentiment around the stock. Dr. Reddy’s shares have climbed 10% in the past month and 15% over the last three months. Although it remains 6% down year-to-date, the stock has gained 11% over the past year, 40% in two years, and an impressive 60% in the last five years, reflecting strong long-term fundamentals.
At 11:50 AM, Dr. Reddy’s stock was trading 3.20% higher at ₹1,292.25 per share on the BSE.
Disclaimer: Investment decisions should be based on independent financial advice. This article reflects market developments and should not be taken as a recommendation.
