VR Logo

LIC Mutual booked profits in Cyberspace

"We managed to book a profit of Rs 49.77 lakh" reveals LIC Mutual Fund's Area Manager, Dinesh Kapoor.

Barring a small portion of its holding in Cyberspace Infosys, LIC Mutual Fund made a neat profit on its investments, according to a senior AMC official. " We booked a profit of Rs 49.77 lakh on our investments in Cyberspace Infosys," says Dinesh Kapoor, Area Manager, Jeevan Bima Sahayog AMC.

Cyberspace Infosys, the non-banking finance company that turned itself into a technology firm had spiraled from around Rs 56 levels in March 1999 to an all time high of Rs 1374.7 in March 2001. "We purchased the stock between December 1999 and March 2000 with an investment of Rs 6.78 crore at an average acquisition price of Rs 880.75,'' says Kapoor. This investment of 77, 000 shares was spread across 10 schemes of LIC Mutual Fund.

However, amid a widespread battering of technology stocks since March 2000, Cyberspace Infosys also saw a sharp drop. Moving in quickly to book its profits in the counter, LIC exited all but 200 shares of the stocks between July and August at an average price of Rs 948.25, thus managing to book profits to the tune of Rs 49.77 lakh. Dhan 80 CCB II is the lone fund to hold 1000 (after a 1:5 stock split) shares of the stock as on March 2001 and was valued at Rs 12000 as on that date.