LIC picks up nearly 4% stake in Bank of India

State-owned Bank of India on Friday said LIC has picked up nearly 4 per cent equity shares of the bank through an open market transaction a day earlier.

LIC has picked up nearly 3.9 per cent (15,90,07,791 shares) of the bank through open market acquisition on September 2, 2021, Bank of India said in a regulatory filing.

Before the latest acquisition of shares in the bank, LIC held over a 3.17 per cent stake in the state-owned bank.

The bank said that LIC's stake in Bank of India has now increased to 7.05 per cent, equivalent to 28,92,87,324 shares.

As per Sebi regulations on substantial acquisition of shares and takeovers, companies have to inform the stock exchanges when an entity holds more than 5 per cent shares in a listed company.

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Last week, the bank closed its QIP in which it raised Rs 2,550 crore by allotting preference shares to qualified institutional buyers (QIBs). In the qualified institutional placement (QIP), which closed on August 30, LIC picked up the biggest chunk by acquiring nearly 39.22 per cent (15,90,07,791 shares) of the equity shares offered in the issue.

Through this QIP, the government shareholding in the bank came down to 82.50 per cent from 90.34 per cent earlier.

Apart from using the equity capital to fund business growth, the bank also has to bring down the government's shareholding in the bank. Thus, it is aiming to reduce the government holding by selling the equity.

Bank of India stock closed at Rs 59.30 apiece on BSE, down 0.59 per cent from its previous close.