LIC ups stake in Bank of Maharashtra to 7.10%

7 Oct 2024 , 11:40 AM

The Life Insurance Corporation of India (LIC) increased its investment in the Bank of Maharashtra from 4.05% to 7.10%, according to an exchange filing on Saturday (October 5). This increase followed the allocation of 25.96 crore equity shares via a Qualified Institutional Placement (QIP).

With this transaction, LIC’s shareholding in the bank surpassed 5% on October 5, 2024. The QIP allocated shares at ₹57.36 each, representing 3.376% of LIC’s new holding.

Previously, LIC lowered its interest in Mahanagar Gas by 2% via open market sales.

Additionally, it reduced its stake in Aurobindo Pharma from 5.01% to 2.265% between November 2021 and September 2024.

In September, LIC boosted its share in IRCTC, the railway PSU stock, from 7.278% to 9.298%.

A Qualified Institutional Placement (QIP) is a capital-raising technique offered to India’s listed corporations. It enables corporations to offer equity shares or securities convertible into equity shares to qualified institutional buyers (QIBs) at a lower price than the current market price.

This strategy is preferred because it allows businesses faster and more flexible access to funds without the time-consuming public offering process.

At around 11.01 AM, LIC was trading 4.13% lower at ₹931.25, against the previous close of ₹971.15 on NSE. The counter touched an intraday high and low of ₹977, and ₹924.15, respectively.

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