ICICI Bank Approves Sale Of 19% Stake In ICICI Merchant Services

ICICI Bank announced the approval of a proposal to sell its 19% stake in ICICI Merchant Services Private Ltd., a move that is expected to generate between Rs 160 crore and Rs 190 crore. The decision, made by the bank's board, will lead to IMSPL no longer being classified as an associate company of ICICI Bank once the sale is completed.

The sale is subject to receiving the necessary regulatory approvals, with the transaction expected to be finalised by June 30, 2025.

For the fiscal year 2024, IMSPL reported revenue from operations of Rs 475 crore and it had a net worth of Rs 645 crore as of March 31, 2024.

ICICI Bank stated that the stake sale transaction will not involve any related-party transactions, as the buyer, First Data Holdings 1 (Netherlands) BV, does not belong to the ICICI Bank promoter group or any of its related companies. First Data Holdings is a prominent global player in electronic commerce and payment services.

This move comes as part of ICICI Bank's strategy to streamline its operations and reduce its stake in certain non-core investments.

ICICI Bank share price fell as much as 1.18% to Rs 1,313.50 apiece. It later recovered losses to trade 0.82% higher at Rs 1,340.10 apiece, as of 02:12 p.m. This compares to a 0.74% advance in the NSE Nifty 50 Index.

It has risen 32.17% in the last 12 months. Total traded volume so far in the day stood at 0.78 times its 30-day average. The relative strength index was at 64.

Out of 50 analysts tracking the company, 45 maintain a 'buy' rating, and five recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.9%.