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ICICI Bank share price rises over 3% after lender sells stake in life insurance arm

ICICI Bank share price climbed up to 3.12% to touch an intraday high of Rs 375.25 against previous close of Rs 363.90 on BSE


twitter-logoBusinessToday.In | June 22, 2020 | Updated 16:32 IST
ICICI Bank share price rises over 3% after lender sells stake in life insurance arm
ICICI Bank share stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages

ICICI Bank share price gained over 3% today after the private lender sold 1.5 per cent stake in its life insurance arm ICICI Prudential Life Insurance Company Limited for Rs 840 crore. The stock has risen 7.48% in the last 3 days. The large cap stock climbed up to 3.12% to touch an intraday high of Rs 375.25 against previous close of Rs 363.90 on BSE.

The share stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. The stock has risen 11.15% in one week and 26.3% in a month. However, the share has fallen 31.73% since the beginning of this year and declined 14.63% in one year.

Market capitalisation of the lender currently stands at Rs 2.38 lakh crore. The stock closed 1.07% higher at Rs 367.80 on BSE. The lender pared its stake by selling stake in life insurance arm to approximately 51.4 per cent.

"In line with this intent and pursuant to approval granted by the Board, the Bank has today divested 21,500,000 equity shares of face value of Rs 10 each of ICICI Prudential Life Insurance Company Limited, representing 1.50% of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs 8.40 billion," ICICI Bank said in the exchange filing.

ICICI Lombard share price falls 2% after ICICI Bank sells stake worth Rs 2,250 cr

Meanwhile, share of ICICI Prudential Life Insurance Company ended at 3.85% higher at Rs 406.80 against previous close of Rs 391.70 on BSE.

On June 19 , ICICI Bank sold 1.80 crore shares amounting to 3.96% stake in ICICI Lombard General Insurance.  The transaction was worth Rs 2,250 crore. In total, Rs 3,090 crore has now been raised by the Bank by selling stake in the two life and general insurance subsidiaries.

While announcing its results for Q4FY20 on May 9, the Bank had stated that it would look at further strengthening the balance sheet as opportunities arise.

ICICI Bank reported a 26.03 per cent on-year rise in standalone profit at Rs 1,221.36 crore for Q4FY20. The bank made coronavirus related provisions of Rs 2,725 crore. The bank also approved fundraising of up to Rs 25,000 crore via non-convertible debentures in the domestic market and up to $3 billion through offshore bonds.

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