New Delhi: State-owned Life Insurance Corporation (LIC) bought shares worth over Rs5,800 crore in State Bank of India’s (SBI) Rs15,000 crore qualified institutional placement (QIP).
The insurance behemoth bought 38.67% of shares put on the block via QIP by the country’s largest bank in early June. Following the investment, the shareholding of LIC in SBI has increased to nearly 10.6% from 8.6%. Europacific Growth Fund picked up 10.62% of the securities, as per a regulatory filing.
Shareholding of insurance companies in SBI has increased to 11.77% after the issue as against 10.14% at the end of March quarter.
In the largest equity issuance in the country, SBI had raised Rs15,000 crore through QIP. It had issued around 52.21 crore new shares at a price of Rs287.25.
The EuroPacific Growth Fund is part of a family of mutual funds called American Funds. The fund invests in stocks of companies operating across diversified sectors.
SBI will use the QIP proceeds to augment its capital adequacy ratio and for general corporate purposes.