New Delhi [India], July 4 : The Life Insurance Corporation (LIC) of India has increased its stake in IDFC First Bank, according to a filing with the exchanges on Thursday.
After the increase, the LIC's shareholding in IDFC First Bank has surged from 0.20 per cent to 2.68 per cent. In numerical terms, this increase translates from 1,42,01,484 shares to 20,02,36,384 shares, representing an investment of Rs 150 crore.
"This is to inform that the Life Insurance Corporation of India ('the Corporation') has increased its shareholding in equity shares of IDFC First Bank Limited ('Company') from 1,42,01,484 to 20,02,36,384, on a preferential basis, i.e., 0.20 per cent of the pre-issue paid-up capital to 2.68 per cent of the post-issue paid-up capital," the company disclosed in its statement.
LIC acquired these shares at a price of Rs 80.63 each, as part of a private placement offer by IDFC First Bank on June 30.
The IDFC First Bank, with a market capitalization of Rs 57,059.68 crore, operates within the banking services sector. The bank was established following the merger of erstwhile IDFC Bank and erstwhile Capital First on December 18, 2018.
The shares of the LIC surged by more than two per cent to Rs 1010.30 during the closing session on Thursday.
The LIC posted a net profit of Rs 13,781.59 crore for the quarter ending on March 31, 2024. The company's net profit rose by 4.5 per cent from Rs 13,190.79 crore reported in the same period of the previous fiscal year. LIC has also recommended a final dividend of Rs 6 per equity share.
The expense of management (EoM) of LIC rose by nearly 15 per cent to Rs 24,709.05 from Rs 21,435.23 last year. Net income from investments increased by 24.43 per cent year-over-year to Rs 84,425.45 crore in Q4FY24. Net profit for FY24 was Rs 40,676 crore, compared to Rs 36,397 crore in FY23.