State-owned Life Insurance Corporation (LIC) bought shares worth over Rs 5,800 crore in SBI’s Rs 15,000 crore qualified institutional placement (QIP). The insurance behemoth bought 38.67 per cent of shares put on the block via QIP by the country’s largest bank earlier this month. Following the investment, the shareholding of LIC in the SBI has increased to nearly 10.6 per cent from 8.6 per cent. Europacific Growth Fund picked up 10.62 per cent of the securities, as per a regulatory filing. Shareholding of insurance companies in SBI has increased to 11.77 per cent after the issue as against 10.14 per cent at the end of March quarter.
In the largest equity issuance in the country, State Bank of India had raised Rs 15,000 crore through QIP. It had issued around 52.21 crore new shares at a price of Rs 287.25. 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.