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LIC Boosts Stake in Bank of Maharashtra through Qualified Institutional Placement (QIP).

Banking & Finance | Dated: 21 Oct 2024

The Life Insurance Corporation of India (LIC), based in Mumbai, has increased its shareholding in the Pune-based Bank of Maharashtra (BoM) from 4.05% to 7.10%. This change follows the allocation of 25.96 crore shares to LIC as part of the bank's Qualified Institutional Placement (QIP) process. LIC acquired an additional 3.376% of the bank’s shares at an average price of ₹57.36 per share.

🎯 Key Highlights:

  • - In the QIP process, LIC emerged as the largest investor, securing 42.56% of the total issue size. Other significant participants included ICICI Prudential Life Insurance, which acquired 8.51%, and Aditya Birla Sun Life with 5.67%.

💡 Other Important Facts:

  • (i) The share allotment was conducted under Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, issued in July 2023.
  • (ii) A Qualified Institutional Placement (QIP) is a method for listed companies to raise capital by issuing equity shares to institutional investors.

📚 Test Your Knowledge:

Which institution has recently increased its stake in Bank of Maharashtra?

Correct Answer: LIC

🚀 Quick Recap:

About Life Insurance Corporation (LIC)

  • Chairperson: Siddhartha Mohanty
  • Headquarter : Mumbai