Moneycontrol
Last Updated : Jun 19, 2020 11:16 AM IST | Source: Moneycontrol.com

ICICI Bank offloads 3.96% stake in insurance arm, stock gains but Lombard corrects

The bank's shareholding in ICICI Lombard General Insurance Company has now been reduced to around 51.9 percent.

 
 
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ICICI Bank share price gained over a percent intraday on June 19 after the private sector lender sold a 3.96 percent stake in its insurance arm, ICICI Lombard General Insurance Company Ltd.

The stock has gained 25 percent from its March lows but overall, it has remained rangebound amid concerns in the banking sector over non-performing assets (NPAs) especially after the end of the RBI's moratorium on repayment of term loans.

At 1046 hours, it was trading at Rs 352.80, up 0.23 percent, on the BSE while ICICI Lombard corrected over a percent.

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Announcing its results for the March quarter in May, the country's second- largest private sector lender had said that it would look at further strengthening the balance sheet as opportunities arise.

In line with this intent and pursuant to approval granted by the board, the bank said it had on June 19 divested 1.8 crore equity shares of ICICI Lombard General Insurance Company, representing 3.96 percent of its equity share capital at March 2020.

The lender sold its stake through open market transactions on the stock exchange for an approximate consideration of Rs 2,250 crore.

Following this, the bank said its shareholding in ICICI Lombard General Insurance Company was reduced to around 51.9 percent.
First Published on Jun 19, 2020 11:16 am
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