RBI gives a green flag to LIC for the acquisition of HDFC Bank’s stakes up to 9.99%. Now LIC HDFC Bank share acquisition is getting attention in the headlines. In addition, RBI advises LIC to acquire the remaining stake within one year. The company cannot extend its stake beyond 9.99%. LIC currently has 5.19% of the stake. HDFC Bank shared the news recently on social media. The bank has been in the headlines for 1 month. The Q3 2024 made a good profit for the quarter with a net profit of Rs. 16,372 Crore. The bank’s shares also fell after achieving its all-time high.
RBI permits LIC to acquire around 9.99% of HDFC Bank’s stake. The company already has a 5.19% stake in the bank. However, it will be the final limit. LIC cannot extend its limit beyond a 9.99% stake in the company’s paid-up capital. LIC has to acquire the remaining stake within one year. It means the company has to acquire 4.8% of the remaining stake before 24 January 2025. LIC took permission from RBI because it’s necessary for any entity to get permission from RBI before holding more than 5% in the bank. However, they can own below 5% of the stake in the company without RBI’s permission.
HDFC Bank’s shares are currently going below. The company’s shares are falling rapidly after excessive selling of the shares in the market. The graph follows a downward trend. The shares fall by 14.37%. It reached quite close to its all-time low in the market. The current share price of HDFC shares is Rs. 1,440.70 per share. The quarter results were positive but the market is red today.
LIC asked for permission from the RBI to extend its stake in the company. The company is increasing its profit continuously. The previous quarter records 33% growth in the markets. HDFC performed well in the market. However, there is still a lack of enthusiasm among the investors leading to an increase in the selling of the shares in the market. The next few years can be a good growth for the company. The banking sector has wide potential for growth. Thus many are also putting more money in the banking sector. We will share more updates shortly. LIC has been among the most trusted parties. It has recently launched some new insurance policies as well. We hope you get enough details above.