State-owned Life Insurance Corporation (LIC) has announced a significant increase in its stake in the Bank of Maharashtra, raising its ownership from 4.05% to 7.10%. This change follows the allocation of approximately 259.6 million shares during the bank’s recent qualified institutional placement (QIP).
During this QIP process, LIC acquired an additional 3.376% equity in the bank at an average price of Rs 57.36 per share.
In total, Bank of Maharashtra successfully raised around Rs 3,500 crore through this QIP by issuing 61.01 million shares to qualified institutional investors at a price of Rs 57.33 per share, which is slightly lower than the initial issue price set at Rs 60.37.
Among the key participants in this fundraising effort, LIC emerged as a leading investor, securing about 42.56% of the total offering size. Other notable investors included ICICI Prudential Life Insurance and Aditya Birla Sun Life Insurance, which received allocations of 8.51% and 5.67%, respectively.
This strategic move by LIC not only strengthens its position within Bank of Maharashtra but also reflects confidence in the bank’s growth potential amidst evolving market conditions and economic recovery efforts post-pandemic.
The increased investment from LIC may signal positive prospects for both entities as they navigate future challenges and opportunities within India’s financial landscape.
