LIC increases its ownership of Bank of Baroda by 5% overall

22 Nov 2023 , 02:06 PM

On November 22, attention will be focused on Bank of Baroda shares because the public lender’s stake was boosted by the large insurance company, LIC. According to LIC, through open market transactions, its stake in Bank of Baroda has grown by 24.39 lakh shares, to 26.02 crore shares from 25.78 crore shares.

The total amount of shares held exceeded 5% of the company’s paid-up capital, amounting to 5.031%. The purchase was finalized on November 20th, with an average cost of Rs 197.99 for the shares. As a result, the total acquisition cost will be about Rs 48.3 crore.

On November 21, Bank of Baroda’s shares ended the day at Rs 195.5 per share, down 1.09% on the NSE. LIC’s shares closed at Rs 610.6 per equity share, down 0.21 percent.

In an exchange filing earlier this month, Bank of Baroda stated that it intends to raise up to Rs 15,000 crore through infrastructure and tier-II bonds in order to finance business expansion.

According to the PSU bank, the capital raising committee of the bank met on November 18 and resolved to raise Rs 10,000 crore through infrastructure bonds and Rs 5,000 crore through tier-II bonds.

On November 4, the PSU lender announced a net profit of Rs 4,252.89 crore for the September quarter of 2023–24. This represents a 28.3% increase over the same period the previous year, driven by stronger core income growth and better asset quality. Net interest income (NII) for the bank increased to Rs 10,831 crore, or 6.4%, year over year.

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