LIC increases stake in SBI by 15%

A latest stock exchange disclosure has revealed that Life Insurance Corporation of India (LIC) has acquired 2.13 crore shares of SBI between August 28, 2013, and February 5, 2014. LIC’s stake in SBI has now increased from 12.15% to 14.991%.

According to sources, LIC has increased its stake in SBI  by acquiring shares through the open market and also by way of participating in the recently-concluded qualified institutional placement (QIP).

Last month, SBI raised Rs 8,032 crore by selling shares through a QIP, making it the biggest equity sale via this route. The bank sold 5.13 crore shares at an average price Rs 1,565 apiece, which was on the lower side of the price band it had set. After the equity allotment, the government stake will come down to 58.6% from over 62%.