Finance

LIC picks up practically 4% stake in Financial institution of India by means of open market transaction

State-owned Financial institution of India on Friday stated LIC has picked up practically 4 per cent fairness shares of the financial institution by means of an open market transaction a day earlier.

LIC has picked up practically 3.9 per cent (15,90,07,791 shares) of the financial institution by means of open market acquisition on September 2, 2021, Financial institution of India stated in a regulatory submitting.

Earlier than the most recent acquisition of shares within the financial institution, LIC held over a 3.17 per cent stake within the state-owned financial institution. The financial institution stated that LIC’s stake in Financial institution of India has now elevated to 7.05 per cent, equal to twenty-eight,92,87,324 shares.

As per Sebi rules on substantial acquisition of shares and takeovers, firms have to tell the inventory exchanges when an entity holds greater than 5 per cent shares in a listed firm.

Final week, the financial institution closed its QIP wherein it raised Rs 2,550 crore by allotting desire shares to certified institutional patrons (QIBs).

Within the certified institutional placement (QIP), which closed on August 30, LIC picked up the most important chunk by buying practically 39.22 per cent (15,90,07,791 shares) of the fairness shares supplied within the difficulty.

Via this QIP, the federal government shareholding within the financial institution got here all the way down to 82.50 per cent from 90.34 per cent earlier.

Other than utilizing the fairness capital to fund enterprise progress, the financial institution additionally has to convey down the federal government”s shareholding within the financial institution. Thus, it’s aiming to scale back the federal government holding by promoting the fairness.

Financial institution of India inventory closed at Rs 59.30 apiece on BSE, down 0.59 per cent from its earlier shut.

Additionally learn: LIC acquires over 6.64 lakh shares of Cadila Healthcare, takes stake to above 5%

Credit score – Monetary issues

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