LIC to pick up 5 per cent stake in Bank of Maharashtra

Life Insurance Corporation of India (LIC) will pick up 5 per cent stake in Bank of Maharashtra through the lender's preferential allotment of shares valued at around Rs 140 crore.

The board of directors of the bank has decided "to issue 2.53 crore equity shares as LIC of India may approve, on preferential allotment basis....," Bank of Maharashtra said in a filing to the BSE.

At the prevailing share price of Bank of Maharashtra at Rs 56.05, the deal would be valued at around Rs 140 crore.

"The Ministry of Finance has indicated their intention to infuse capital funds to the bank and advised the bank to take all preparatory steps in this regard," the filing added.

Pursuant to the government decision to recapitalise the bank, its board also approved issuance of additional equity of Rs 860 crore on preferential allotment basis to the government, the filing added.