LIC Invests ₹5,000 Cr in SBI, Increases Stake Through Landmark QIP

In a significant development in India’s capital markets, LIC has raised its stake in SBI from 9.21% to 9.49%, investing ₹5,000 crore through the bank’s recent Qualified Institutional Placement (QIP). LIC purchased over 6.1 crore shares at an issue price of ₹817 per share.

SBI’s QIP Sets New Benchmark

This QIP, the largest in India’s history, witnessed exceptional demand, attracting bids worth ₹1.10 lakh crore over 4 times the issue size. More than 120 institutional investors from across the globe participated, underscoring broad-based confidence in SBI’s growth trajectory.

According to media reports, heavyweight investors such as BlackRock Group and Marshall Wace were among the major participants.

SBI Completes QIP Allotment

SBI’s QIP outpaced the previous record held by Coal India’s ₹22,560 crore share sale in 2015. The success of this capital-raising effort highlights the strong appeal of large, well-managed public sector enterprises among institutional investors.

On Monday, SBI allotted over 30.59 crore equity shares to participating institutions. The offering was led by a consortium of top investment banks and financial advisors, including Kotak Mahindra Capital, SBI Capital Markets, ICICI Securities, Morgan Stanley India, HSBC Securities, and Citigroup.

What This Means for the Market?

This move reaffirms LIC’s role as a key institutional player in India’s banking sector and underlines its continued confidence in SBI’s long-term prospects. The overwhelming investor response to the QIP reflects strong sentiment for India’s banking growth story and reinforces SBI’s strategic importance in the financial ecosystem.

Read More: SBI UPI Services to Be Temporarily Unavailable on July 22: Here’s What You Need to Know.

Conclusion

The recent QIP by SBI and LIC's increased stake highlight the ongoing interest of institutional investors in established public sector enterprises. While this development reinforces SBI’s role in India’s financial system and LIC’s strategic investment approach, market participants will continue to monitor how such capital-raising efforts support long-term growth plans. As always, investment decisions should be guided by thorough research and a clear understanding of individual risk profiles.

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