Life Insurance Corporation (LIC) has acquired 2.5% stake in power company, NTPC via the just concluded follow on public offer (FPO).

The insurance giant bought 204 million shares of NTPC for a total consideration of Rs 412 crore. LIC's total holding post acquisition in the power firm has increased to 5.78% from 3.3%.

NTPC ended flat at Rs 202 in today's trading.

The Rs 8,400 crore NTPC FPO, which the government had priced at a 5% discount to the market price, had seen very poor response from the retail and HNI segments. When the issue finally closed, the retail portion was subscribed only to the extent of 0.16 times while the HNI portion saw subscription of 0.43 times.