LIC Increases Stake in SBI to 9.49% through QIP, Invests ₹5,000 Crore

LIC has increased its stake in SBI to 9.49% by buying over 6.1 crore shares worth Rs 5,000 crore through the QIP route. SBI's record Rs 25,000-crore institutional share sale was bid more than four times the stock on offer, with marquee names such as BlackRock Group and Marshall Wace joining in to buy into the mass lender's first such capital-raising in eight years.

Life Insurance Corporation of India (LIC) has significantly increased its stake in State Bank of India (SBI) by participating in the bank's record Rs 25,000-crore qualified institutional placement (QIP). LIC acquired over 6.1 crore shares at Rs 817 each, amounting to a total investment of ₹5,000 crore, thereby boosting its holding in SBI to 9.49% [1].

The QIP, which is the largest ever in Indian history, witnessed overwhelming demand, with bids worth Rs 1.10 lakh crore from about 120 institutional investors globally. This includes marquee names such as the $11-trillion asset manager BlackRock Group and London hedge fund Marshall Wace [2]. The sale underscores confidence in SBI's growth prospects and will bolster the bank's common equity tier 1 (CET 1) ratio, positioning it for future expansion.

SBI's shares retreated 0.35% to Rs 829 apiece on Thursday, following the announcement of the QIP. LIC, the largest institutional shareholder of SBI, is likely to retain its stake at the current level, according to people familiar with the details. The SBI board is expected to meet soon to finalize the allocation of the shares [3].

The record Rs 25,000-crore institutional share sale is part of SBI's broader plans to support loan growth, strengthen its balance sheet, and meet regulatory requirements. The fundraise is aimed at boosting its CET 1 capital, which was at 11% in the March 2025 quarter, the lowest among public sector lenders. It’s also the first time since 2017 that the lender is tapping the equity market [3].

References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/lic-ups-stake-in-sbi-to-9-49-via-qip-route-buys-over-6-1-crore-shares-worth-rs-5000-crore/articleshow/122817889.cms
[2] https://economictimes.indiatimes.com/markets/stocks/news/sbi-achieves-record-rs-25000-crore-institutional-share-sale-with-strong-investor-demand/articleshow/122718332.cms?from=mdr
[3] https://www.newindianexpress.com/business/2025/Jul/16/sbi-board-okays-raising-up-to-rs-20000-crore-through-bonds-qip-all-set-to-be-launched