LIC increased its stake in Bank of Maharashtra to 7.10% by acquiring 25.96 crore shares at what price through QIP in October 2024? 

The correct answer is ₹57.36.

Key Points

• The Life Insurance Corporation (LIC) increased its stake in Bank of Maharashtra to 7.10% in October 2024.
• LIC acquired 25.96 crore shares of Bank of Maharashtra.
• The acquisition was done through Qualified Institutional Placement (QIP).
• The shares were acquired at a price of ₹57.36 each.

Additional Information

• Qualified Institutional Placement (QIP)
  • QIP is a capital-raising tool, primarily used in India, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants, which are convertible to equity shares to Qualified Institutional Buyers (QIBs).
  • QIP is governed by the regulations laid down by the Securities and Exchange Board of India (SEBI).
  • This method enables companies to raise funds without undergoing standard regulatory compliance and procedural formalities.
• Life Insurance Corporation (LIC)
  • LIC is the largest insurance company in India, wholly owned by the Government of India.
  • Established in 1956, LIC offers a wide range of insurance products to cater to the varied needs of individuals and businesses.
• Bank of Maharashtra
  • Bank of Maharashtra is a public sector bank headquartered in Pune, India.
  • It was established in 1935 and nationalized in 1969.
  • The bank offers a wide range of banking products and financial services to corporate and retail customers.