India’s largest insurance company, Life Insurance Corporation of India Ltd. has bet big on the largest fund raise by India’s largest lender State Bank of India Ltd.In an exchange filing late Monday night, SBI disclosed that majority of the shares, as part of its Qualified Institutional Placement (QIP), through which it raised ₹25,000 crore, were issued to LIC.
SBI approved the issue of 30.59 crore shares at an issue price of ₹817 per share on Monday evening to eligible institutional bidders. The QIP had received strong demand with interest from domestic and foreign institutions alike. The issue price is a discount of 0.8% to Monday’s closing price
Data shows that LIC was issued 20% of the overall QIP shares worth ₹5,000 crore. Other prominent institutions who were issued shares include Societe Generale, HDFC Life Insurance, HDFC Mutual Fund and Quant Mutual Fund.
Fund% Of QIPWorth (₹ Crore)LIC (Various Schemes)205,000Societe Generale10.372,592HDFC Life Insurance61,500HDFC MF (Various Schemes)5.21,300Quant MF5.081,270
Nearly 50% of all the shares approved in the QIP, were issued to these above-highlighted funds.LIC already has a 9.2% stake in State Bank of India, based on its most recently available shareholding pattern, while HDFC MF has a 1.58% stake.Post the share allotment, the total paid-up equity share capital of the lender increased from ₹892.54 crore, comprising of 892 crore equity shares of face value of ₹1 to ₹923.06 crore, comprising of 923 crore equity shares of face value of ₹1 each.Shares of State Bank of India ended little changed on Monday at ₹824.6. The stock has risen 4% in the last one month, which is also the quantum it has gained so far in 2025.
