LIC Gets RBI Approval To Raise HDFC Bank Stake To 9.99%, Shares Trade Higher
New Delhi: Shares of Life Insurance Corporation of India (LIC) -- the country's largest insurer -- traded 1 per cent higher on Thursday after receiving approval from the Reserve Bank of India (RBI) to increase its stake in HDFC Bank to up to 9.99 per cent. In its regulatory filing, HDFC Bank said the RBI has approved LIC's application to acquire up to 9.99 per cent of the bank's paid-up share…
Shares of Life Insurance Corporation of India (LIC) rose 1 percent on Thursday following the Reserve Bank of India's (RBI) approval for the insurer to boost its stake in HDFC Bank to a maximum of 9.99 percent. The regulatory filing by HDFC Bank confirmed that the RBI had approved LIC's request to acquire up to 9.99 percent of the bank's paid-up share capital or voting rights.
As of August 14, LIC already held 4.11 percent of HDFC Bank's total share capital, according to the filing. The approval allows LIC to substantially increase its ownership in the private sector lender, provided it adheres to all regulatory and statutory requirements. The RBI's decision is also contingent upon meeting specific conditions set by the central bank and complying with relevant Securities and Exchange Board of India (SEBI) regulations.
It is important to note that the approval does not automatically trigger an increase in LIC's stake to 9.99 percent; any rise in ownership will need to comply with the conditions outlined by the RBI and other relevant regulatory norms. LIC is a major institutional investor in India, while HDFC Bank is one of the country's leading private sector lenders.
LIC's stock reached a 52-week high of Rs 468.30 and a low of Rs 361 on the BSE, while HDFC Bank's stock achieved a 52-week high of Rs 1,020.35 and a low of Rs 715.05 on the same exchange.
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