Videocon Industries share price gained 3 percent intraday on Tuesday after the company sold its entire equity stake in insurance joint venture.
The debt-laden company informed exchanges that it has sold entire equity stake in Liberty Videocon General Insurance Company (Liberty Videocon), an insurance joint venture company promoted by Videocon Industries Limited and Liberty Mutual Insurance Group.
The company was holding 51.32 percent of the share capital of Liberty Videocon.
Videocon Industries, which was named in the second list of defaulters under Insolvency and Bankruptcy Code, sold 26 percent stake to Diamond Dealtrade Limited (a DP Jindal Group Company) and the remaining 25.32 percent to Enam Securities Private Limited.
"All the necessary regulatory approvals for the said sale were already received. Post the said divestment, the company ceases to be the Indian promoter of Liberty Videocon," Videocon said.
The amount at which it sold entire stake was not disclosed in the BSE filing.
Accordingly, the name of Liberty Videocon will also change to Liberty General Insurance Company Limited or such other name as may be approved by the regulatory authorities.
At 11:31 hours IST, the stock price was quoting at Rs 14.56, up Rs 0.22, or 1.53 percent on the BSE.
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