State-owned Life Insurance Corporation (LIC) has announced a significant increase in its stake in Pune-based Bank of Maharashtra, raising its shareholding from 4.05% to 7.10%. This change follows the allocation of 259.6 million shares of the state-owned bank during its recent qualified institutional placement (QIP) process.
LIC acquired 3.376% equity in the bank at an average cost of ₹57.36 per share. The QIP process successfully raised approximately ₹3,500 crore, with the bank allotting 61.01 million shares to eligible institutional buyers at an issue price of ₹57.33 per equity share, slightly below the anticipated price of ₹60.37.
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Notably, LIC was a leading investor in the QIP, securing 42.56% of the total issue size. Other prominent investors included ICICI Prudential Life Insurance, which received 8.51%, and Aditya Birla Sun Life, with an allocation of 5.67%. This strategic investment reinforces LIC’s commitment to enhancing its portfolio in the banking sector.
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