Large trades on the stock exchange typically have a story behind them, and this one starts with Nestle India and LIC. On May 26, 2025, the share price of Nestle India jumped by more than 2% in intraday trading abruptly. Not many investors had a clue as to why it did this. The reason was a huge stake purchase by the Life Insurance Corporation of India (LIC).

Nestle India Shares Surge After LIC’s Stake Hike

Nestle India’s share price bounced to ₹2,451 on Monday, indicating great session-long strength. It even touched an intra-day level of ₹2,464.50 before it corrected slightly. Such a bounce was not unexpected. This followed word that LIC had bought more shares of the company, putting both retail and institutional investors in a euphoric mood.

LIC Crosses 5% Ownership Threshold in Nestle India

LIC dominated the news headlines by increasing its holding in Nestle India. In a filing to the regulator, it reported on May 23 that it bought 1.49 lakh shares on the open market. This facilitated LIC’s shareholding to breach the critical 5% level, now controlling 5.001% of the company. LIC held 4.986% earlier.

Crossing this 5% threshold required LIC to officially disclose its new holdings under stock market regulations. This move generally indicates bullishness about the company’s future prospects, and investors sit up and take notice.

Regulatory Filing Reveals New Share Purchase

According to the filing, LIC own 4.82 crore Nestle India shares. That is an enormous stake in a firm that has home brands like Maggi, Nescafé, and KitKat. Despite this share transaction, the aggregate equity capital of Nestle remains at ₹96.41 crore.

Nestle Stock: Recent Gains, Swings, and 52-Week Highs & Lows

While the stock rose this week, it’s still down approximately 11% from its 52-week high of ₹2,777, recorded back in September 2024. It fell to a low of ₹2,115 during March 2025. The rollercoaster has been rough, falling in February but climbing in January, March, and April.

For the month of May alone, the stock is up 2.6%. Over the past year, however, it’s still down approximately 2% overall.

LIC’s investment is reassuring, it is positive about Nestle India’s sunnier days ahead. For retail investors, this might be an indication to have the stock on the watchlist. While not its all-time high, confidence from the giant of LIC may spell sunshine days ahead.