On October 7, it is anticipated that investors will become more interested in Bank of Maharashtra and Apollo Tyres due to the increased holdings held by the Life Insurance Corporation of India (LIC). The statements, which revealed LIC’s expanding participation in these important industries, were made through regulatory filings.
On October 4, the share price of Bank of Maharashtra closed lower by 1.40 per cent at ₹57.66 on the BSE. With a market capitalization of ₹40,831.20 crore, the company is doing well. According to NSE, the share price of Apollo Tyres also ended the day lower than it started, closing at ₹511.00, down 2.81 percent. With a market capitalization of ₹32,453.66 crore, the company is doing well. According to NSE, the stock price of Apollo Tyres last reached its 52-week high on September 26, 2024, at ₹584.90.
Market Reaction
In response to the news, shares of LIC increased by 0.36% to ₹971, while those of Bank of Maharashtra finished 1.4% lower at ₹57.66, reflecting differing market reactions. In comparison to typical public offerings, the QIP offers listed companies in India a quick and flexible way to acquire cash. It is an essential tool for capital raising.
Qualified Institutional Placement (QIP)
Publicly traded firms in India can raise money through the issuance of equity shares or convertible instruments through a Qualified Institutional Placement (QIP). The qualified institutional buyers (QIBs) that purchase these shares are pension funds, insurance companies, and mutual funds, among other organizations.
When it came to the Bank of Maharashtra, the QIP made it easier for shares to be quickly allocated to LIC, giving the bank the money it needed to support its growth and comply with legal obligations. Institutional investors such as LIC find QIPs to be an appealing alternative due to the lower share price they offer.
