In an October 5, 2024, exchange filing, the Life Insurance Corporation of India (LIC) revealed a substantial increase in its ownership of Bank of Maharashtra, from 4.05% to 7.10%. This rise is in response to the Qualified Institutional Placement (QIP) allocation of 25.96 crore equity shares at a price of ₹57.36 per share. To improve the bank’s balance sheet and support development plans, LIC made this calculated strategic action, which shows the bank’s confidence in its growth potential.
Since it shows the company’s dedication to the public sector bank, LIC’s shareholding has surpassed 5%, which is a noteworthy accomplishment. The 3.376% stake increase that results from the transaction satisfies SEBI criteria about disclosed commitments for listed corporations.
In light of the most recent modifications, LIC has previously sold a 2% portion of its shares in Mahanagar Gas on the open market and decreased its ownership of Aurobindo Pharma from 5.01% to 2.265% between November 2021 and September 2024. In September 2024, however, LIC increased its ownership of the railway PSU IRCTC from 7.278% to 9.298%. In line with LIC’s strategic investment approach, this acquisition represents a substantial turnaround.
The market’s reactions to these developments were varied; after the announcement, shares of LIC increased by 0.36% to ₹971, while those of Bank of Maharashtra closed 1.4% lower at ₹57.66. For listed firms in India, the QIP is an essential capital-raising tool that offers a quick and flexible way for them to acquire cash in contrast to traditional public offerings.
