ICICI Bank sells 1.5% stake in life insurance arm for Rs 840 crore

Last week, the lender had informed exchanges about selling a little less than 4 per cent stake in its general insurance subsidiary for Rs 2,250 crore.

ICICI Bank on Monday said it has sold 1.5 per cent stake in its life insurance subsidiary for around Rs 840 crore with an aim to strengthen the balance sheet.

While announcing its results for 2019-20 on May 9, ICICI Bank had said it would look at further strengthening the balance sheet as opportunities arise. (Bloomberg)

Last week, the lender had informed exchanges about selling a little less than 4 per cent stake in its general insurance subsidiary for Rs 2,250 crore.

While announcing its results for 2019-20 on May 9, ICICI Bank had said 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 has today divested 2,15,00,000 equity shares of face value of Rs 10 each of ICICI Prudential Life Insurance Company, representing 1.50 per cent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs 8.40 billion (Rs 840 crore ),” ICICI Bank said in a regulatory filing.

On Friday, it had informed exchanges about selling 3.96 per cent stake, equivalent to 1.8 crore shares in ICICI Lombard General Insurance, through open market for Rs 2,250 crore. Following this, the bank’s stake in the subsidiary has come down to 51.9 per cent.

ICICI Bank stock was trading 1.54 per cent up at Rs 369.85 on BSE. ICICI Prudential Life scrip was trading higher by 4.12 per cent at Rs 407.90.