LIC, which had 9.08 per cent stake earlier, hiked its shareholding in the company to 12.98 per cent by buying shares between July 25, 2014, and February 24, 2016, NTPC said in a filing to the BSE.

LIC’s stake increase in NTPC includes its participation in this week’s offer of sale (OFS) by the government.

Earlier this week, the government raised about Rs 5,030 crore from sale of its 5 per cent stake in NTPC, with insurance companies getting almost two-third shares but retail participation was lukewarm amid a free-fall of stock markets.

The public issue of 41.22 crore equity shares was mostly lapped up by FIIs, insurance companies, mutual funds and HNIs, all of which came on the first day of OFS.

About 63 per cent of the shares sold were allocated to insurance companies, led by state-run LIC. Retail investors, who were reserved 20 per cent of the issue size, got 8.5 per cent of the shares.

Shares of NTPC Ltd were trading at Rs 118.55 apiece, up 0.04 per cent on the BSE in the afternoon trade.