Life Insurance Corporation of India (LIC) has informed in its exchange filing that it has increased its stake in the Bank of Maharashtra. On Saturday, LIC issued an official statement in which it said that it has raised its shareholding in the Maharashtra Bank from 4.05 per cent to 7.10 per cent following a Qualified Institutional Placement (QIP).
LIC stated, "The Life Insurance Corporation of India ("the Corporation") has increased its shareholding in Bank of Maharashtra ("Company") from 4.05 per cent (pre-allotment) to 7.10 per cent (post allotment)."
Notably, the increased shareholding comes after the Bank allotted 25.96 crore equity shares as part of the QIP to LIC. Before the allotment, LIC held a 4.05 per cent stake in the bank, which increased to a 7.10 per cent stake, marking a significant rise in its ownership.
Share allotment under SEBI regulations
The share allotment was made under the guidelines of Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations. LIC, in its statement, also noted that it has complied with the regulatory requirements, including the details stipulated under the SEBI circular issued in July 2023. The circular governs disclosure obligations for listed entities.
LIC confident in bank's growth
It must be noted that QIP is a way for listed companies to raise capital by issuing equity shares to institutional investors. LIC's stake increase transaction indicates its confidence in the growth potential of the Bank of Maharashtra. Bank of Maharashtra is one of the public sector banks, and this infusion of capital through QIP will help strengthen its balance sheet and support its expansion plans.
With ANI Inputs
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