LIC held a 7.98% stake in the bank at the end of the September quarter

IDBI Bank said on Friday that it has allotted shares worth Rs 14,500 crore to Life Insurance Corporation. The move was part of the ongoing acquisition of a controlling stake in the bank by the insurance company. About 238.8 crore shares at a price of Rs 60.73 apiece were allotted to LIC through a preferential issue on Friday, according to a regulatory filing by IDBI Bank.

IDBI Bank shareholders had in October approved the decision by the board of the lender to transfer the shares as part of the acquisition by Life Insurance Corporation.

LIC is in the process of increasing its stake in IDBI Bank to 51 per cent, which would help it enter the banking space.

At the end of the September quarter, Life Insurance Corporation held a 7.98 per cent stake in IDBI Bank.

Shares in IDBI Bank moved 0.6 per cent higher at Rs 61.50 apiece on the National Stock Exchange on Friday, ahead of the announcement of preferential share allotment by the bank.

Stock markets extended gains to a third session in a row, with benchmark indices Sensex and Nifty finishing 0.8 per cent and 0.7 per cent higher respectively.