Life Insurance Corporation (LIC), country’s largest insurance company has acquired 38% shares in this year’s largest equity issuance by country’s largest lender State Bank of India (SBI). The bank closed the qualified institutional placement (QIP) on June 8 to raise Rs 15,000 crore. The issue had opened on June 5. This increased LIC’s stake in the government-owned bank from 8.64%to 10.4%.
Excluding LIC, 25% shares were taken by DIIs (domestic institutional investors), 26% by foreign institutional investors (FIIs) and 11% by high quality FII hedge funds. DIIs, FIIs, sovereign wealth funds and many investors are who have never invested in India and most are those who have never invested in a public sector institution earlier have participated in the issue.
