Merrill Lynch on Monday bought nearly 30 million shares of ICICI Bank for Rs 8.23 billion through an open market transaction.
According to the block deal data available with BSE, Merrill Lynch Markets Singapore Pte Ltd acquired 29.4 million shares, amounting to 0.46 per cent stake in the bank.
The shares were picked up at an average price of Rs 280, valuing the transaction at Rs 8.23 billion, the data showed.
The scrips were sold by Baillie Gifford Emerging Markets Fund.
ICICI Bank is embroiled in a controversy over the alleged conflict of interest and quid pro quo involving its CEO Chanda Kochhar and her family members in extending a loan to Videocon Group.
The CBI has launched a preliminary investigation into the Rs 32.5 loan ICICI Bank had extended to Videocon in 2012 and the role of Kochhar's husband.
As per the allegations, Videocon chairman Venugopal Dhoot invested Rs 64 crore in NuPower Renewables, a firm owned by Deepak Kochhar after Videocon secured a loan from a consortium of lenders, including ICICI Bank.
ICICI Bank's stock ended the day on BSE at Rs 280.45, down 0.05 per cent from the previous close.