ICICI Bank Ltd. increased its stake in ICICI Lombard General Insurance Co. on Tuesday through an open market transaction.
ICICI Bank, the insurer's promoter, bought a 1.65% stake comprising 80.9 lakh shares for Rs 1,356 crore on the stock exchange, according to an exchange filing.
The promoter bank, as of December 2023, held a 47.91% stake in the company but following the acquisition, that has risen to approximately 49.5%.
In addition, the bank said in exchange filings that the board of directors has approved increasing the shareholding in ICICI Lombard General Insurance by 400 basis points in multiple tranches. After the acquisition, the insurer will become a subsidiary of ICICI Bank.
The bank also said it had received approval from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India for the deal.
Sunil Bharti Mittal-owned Bharti Enterprises Ltd., on the other hand, sold 62.5 lakh shares of the insurer, representing a 1.27% stake, for Rs 1,666.35 apiece, according to block deal data. The company held a 3.70% stake in the company as of December 2023.
Shares of ICICI Lombard General Insurance rose as much as 4.69% to close at Rs 1,650.55 apiece on Tuesday. This compares with a 0.34% advance in the NSE Nifty 50 Index.
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