ICICI Bank shares slipped as much as 4 per cent intraday on Monday after it informed bourses that it will make 10 per cent investment in equity capital of Resurgent Power Ventures (RPV), a power platform created to facilitate investment in power projects in India by ICICI Group and Tata Group. At 10.31 am, shares of the lender were trading 2.39 per cent down at Rs 267.60. The scrip opened the day at Rs 267 and has touched a high and low of Rs 268.60 and Rs 263, respectively, in trade so far. Later, the scrip ended 1.97 per cent down at Rs 268.75. ICICI Bank’s Bahrain branch has entered into a subscription agreement to invest in RPV.
Caisse de dépôt et placement du Québec (CDPQ) of Canada, Kuwait Investment Authority and State General Reserve Fund of Oman are among other partner investors.
ICICI Bank in a BSE filing said, “The equity investment in RPV is a strategic investment to leverage the opportunities in the power sector. RPV as a power platform will facilitate investment in power projects in India. The platform targets acquisition of controlling stakes in power generating companies, both conventional thermal and hydroelectric and transmission assets in India. Tata Power will be a strategic partner and will provide operations and maintenance services to assets acquired by the platform.”
For the quarter ended June 30, 2016, ICICI Bank reported net profit of Rs 2232.35 crore, down 24.99 per cent, against Rs 2976.16 crore in the same quarter last year. Total income of the bank increased by 6.06 per cent year-on-year to Rs 16759.51 crore.