Life Insurance Corporation(LIC), which is state-owned insurance company has bought stake in Bank of India(BoI). Bank of India is a commercial bank which was owned by government since nationalization in 1969.
LIC which was owing 11.13% share earlier, have bought an additional stake of over 3% in public sector, Bank of India for about ₹450.88 crore. The Bank sold 33,500,00 shares to LIC, which is equivalent to over 3.12% equity. The LIC bought the stake through an open market on a preference shares allotment which was conducted on June 28, 2017, as per the bank’s regulatory filing.
When calculated on the stock weighted average price(WAP) of ₹134.59 per piece of share as on June 28, the total valuation of the deal comes out to be about ₹450.87 crore.
With the purchase of about 3.1% shares, the total share which LIC hold in the Bank of India comes out to be 14.25% which was 11.13% earlier. In the stock trading list, stock of Bank of India yesterday closed with 0.11% increase at ₹140.80.