ICICI Bank sells 1.5% stake in ICICI Prudential for Rs 840 crore

by mehekkaoberoi
  • Private sector lender ICICI Bank on June 22 sold 1.5 per cent stake in its life insurance arm ICICI Prudential for 840 crore.
  • This was done to strengthen the bank’s balance sheet in light of the pandemic that is expected to worsen the bad loans problem of the banks.
  • This is the second such transaction conducted by the bank to strengthen its balance sheet.
  • Last week, the private lender sold 3.96 per cent stake in its general insurance arm ICICI Lombard for Rs 2,250 crore.
  • The bank has now raised Rs 3,090 crore by selling stake in its life and general insurance subsidiaries.
  • In a statement to the exchanges, the bank said, pursuant to the approval granted by the board of the bank, it divested 21.5 million shares of face value of Rs 10 each of ICICI Lombard Prudential Life Insurance, representing 1.5 per cent of its equity share capital on the stock exchange for an approximate total consideration of Rs 840 crore”.
  • Post the transaction, the ICICI Bank’s stake in its life insurance subsidiary stood at 51.4 per cent and the rest is publicly held.
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