New Delhi: ICICI Bank on Wednesday said it will offload 2% stake in its insurance arm ICICI Prudential Life in one or more tranches.
Based on insurer’s stock closing price of Rs410.25 on BSE on Wednesday, the stake sale is estimated to fetch the bank Rs1,178 crore. “The Board of Directors of the bank today approved the sale of up to 2,87,11,100 shares, representing up to 2 per cent of the issued and the paid-up equity share capital of ICICI Prudential Life Insurance Company in one or more tranches,” ICICI Bank said in a BSE filing.
The bank said the stake sale can be through any manner including ‘offer for sale by promoters through stock exchange mechanism’ (OFS). The insurance company is a joint venture between ICICI Bank and the US-based Prudential Corporation Holdings.
While ICICI Bank held 54.88% stake in the JV, Prudential’s stake was at 25.83% as on 31 March, 2018, data on BSE showed. Rest of the equity is held by public and institutional investors. ICICI Prudential Life came up with its initial public offer (IPO) in September 2016.
Stock of ICICI Bank closed at Rs290.65 on BSE, up 1.18%. ICICI Prudential Life ended 2.77% down at Rs410.25.