IDBI Bank share rose 4% in trade today after the lender completed stake sale of 23% in joint venture IDBI Federal Life Insurance Company to Ageas Insurance International NV.
The bank sold 18,40,00,000 shares of IDBI Federal to Ageas for a consideration of Rs 507.10 crore. With this, IDBI Bank's shareholding in the JV now stands at 25% from the earlier 48%.
Reacting to the development, the share rose 4.34% to Rs 32.45 against previous close of Rs 31.10 on BSE. The stock has gained 4.53% in the last 2 days. The share stands higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The stock has fallen 13% in one year and risen 3.86% since the beginning of this year. The stock has lost 16% in one month.
Market cap of the firm rose to Rs 34,730 crore.
Total 18.69 lakh shares changed hands on BSE today. Later, the stock closed 3.86% higher at Rs 32.30.
IDBI Bank said, "Following this transaction, the joint venture has been rebranded as Ageas Federal Life Insurance Company Limited." In August last year, the bank inked a Share Purchase Agreement to sell 27% of its stake in its joint venture arm IDBI Federal to other JV partners viz. 23% to Ageas Insurance International NV (Ageas) and 4% to The Federal Bank (Federal Bank).