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ICICI Bank raises Rs 3,090 cr via stake sale in life, general insurance businesses

ICICI Bank has raised Rs 840 crore by divesting 1.5 percent equity stake in ICICI Prudential Life today.

June 22, 2020 / 12:13 PM IST
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India's second-largest private sector lender ICICI Bank has raised more than Rs 3,000 crore by divesting stake in its life as well as general insurance businesses in two separate deals.

The stake sale in insurance businesses is in line with this intent, said the bank while announcing its results for the quarter ended March 2020 on May 9 this year, it had stated that it would look at further strengthening the balance sheet as opportunities arise.

The stock picked up momentum in last one month, rising 29 percent especially after quarterly earnings scorecard and optimism over gradual re-opening of the economy. It was quoting at Rs 372.05, up 2.24 percent on the BSE at 10:25 hours IST.

"....divested 2.15 crore equity shares of face value of Rs 10 each of ICICI Prudential Life Insurance Company, representing 1.50 percent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs 840 crore," said the lender in its BSE filing.

Following this, the bank's shareholding in ICICI Prudential stands reduced to approximately 51.4 percent.

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Last Friday, ICICI Bank had sold 3.96 percent stake (1.8 crore equity shares) in ICICI Lombard General Insurance Company for Rs 2,250 crore to strengthen the balance sheet. Accordingly the shareholding of lender in general insurance business reduced to 51.9 percent.

Hence, in total, the bank raised Rs 3,090 crore by selling stake in both insurance segments.
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