The Life Insurance Corporation of India (LIC) has raised its shareholding in the Bank of Maharashtra from 4.05% to 7.10%, as announced in an exchange filing on Saturday (October 5). This increase followed the allotment of 25.96 crore equity shares through a Qualified Institutional Placement (QIP).

With this move, LIC’s stake in the bank exceeded 5% on October 5, 2024. The QIP allotted shares at ₹57.36 each, contributing 3.376% to LIC’s new stake.

In Friday’s trading, Bank of Maharashtra’s stock closed down 1.4% at ₹57.66, while LIC’s shares rose by 0.36% to ₹971.

Previously, LIC had reduced its stake in Mahanagar Gas by 2% through open market sales.

Additionally, it cut its holding in Aurobindo Pharma from 5.01% to 2.265% between November 2021 and September 2024.

In September, LIC also increased its stake in the railway PSU stock IRCTC, raising it from 7.278% to 9.298%.

A Qualified Institutional Placement (QIP) is a capital-raising tool available to listed companies in India. It allows companies to issue equity shares or securities convertible into equity shares to qualified institutional buyers (QIBs) at a discounted price compared to the prevailing market price.

This method is favored for its speed and flexibility in accessing capital without going through the lengthy public offering process.