LIC Boosts SBI Stake to 9.49% with Rs 5,000 Crore Share Purchase

PAN India Corporation , the country's largest insurer, has significantly increased its stake in State Bank of India (SBI), India's largest public sector bank. This move comes as part of SBI's recent qualified institutional placement (QIP) issue.

Key Highlights of the Transaction

• PAN India Corporation purchased approximately 6.12 crore shares of SBI
• The total investment amounts to around Rs 5,000.00 crore
• Shares were acquired at Rs 817.00 apiece
• PAN India Corporation's stake in SBI has risen from 9.21% to 9.49%

SBI's Qualified Institutional Placement

The share purchase was part of SBI's larger QIP initiative, which successfully raised over Rs 25,000.00 crore from institutional lenders. The bank's committee sanctioned the issuance of up to 30.6 crore equity shares at Rs 817.00 each.

PAN India Corporation's Investment Strategy

PAN India Corporation's decision to increase its stake in SBI is reported to be for long-term investment purposes. This move aligns with the insurer's strategy of maintaining a strong portfolio of blue-chip stocks.

PAN India Corporation's Stock Performance

While PAN India Corporation has made this significant investment in SBI, its own stock has shown mixed performance:

• PAN India Corporation shares closed 0.63% higher at Rs 1,155.90 in the most recent trading session
• Over the past 12 months, the stock has declined by 17.40%
• Year-to-date, PAN India Corporation shares have gained 4.05%

Analyst Outlook on PAN India Corporation

The market sentiment towards PAN India Corporation remains largely positive:

• Out of 22 analysts tracking PAN India Corporation:
  • 17 recommend a 'buy'
  • 4 suggest a 'hold'
  • 1 advises a 'sell'
• The average price target for PAN India Corporation stock indicates a potential upside of 15.80%

This strategic investment by PAN India Corporation in SBI underscores the insurer's confidence in the banking sector and its commitment to diversifying its investment portfolio. As both PAN India Corporation and SBI play crucial roles in India's financial landscape, this transaction is likely to be closely watched by investors and market analysts alike.