LIC raises stake in Canara Bank, BoB

Country's largest insurer Life Insurance Corporation (LIC) has raised stake in state-owned Canara Bank by about 7.7 percent through preferential allotment of shares.

New Delhi: Country's largest insurer Life Insurance Corporation (LIC) has raised stake in state-owned Canara Bank by about 7.7 percent through preferential allotment of shares.

It has also increased its stake in another public sector lender Bank of Baroda (BoB) by buying 4.7 crore shares from the open market.

With the acquisition, the LIC's stake in BoB increased by 2.1 percent to 11.4 percent. LIC acquired the stake for a consideration of about Rs 750 crore as per the current price.

Shares of BoB closed at Rs 159.55 per unit, up 1.04 percent on the BSE.

These shares were acquired over a period between January 16 and May 25, 2015 from the open market, BoB said in a BSE filing.

With acquisition of 4 crore shares for a consideration of Rs 1,520.32 crore, the stake of LIC in Canara Bank has gone up to 14.4 percent, the lender said in a separate filing on the BSE.

Prior to this preferential allotment, LIC was holding 3.46 crore shares or 6.7 percent in Canara Bank.

Shares of Canara Bank closed at Rs 336.35 per unit, down 1.13 percent on the BSE.

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