ICICI Bank will sell 2% stake from its equity holding in its life insurance arm ICICI Prudential Life Insurance Company Ltd through an offer for sale (OFS) on stock exchanges, the bank said in a statement on Wednesday. ICICI Bank board has approved the sale of up to 2.87 crore shares “in one or more tranches, in any manner permissible under applicable law, including through an ‘offer for sale by promoters through stock exchange mechanism’,” the company said in a notice to the stock exchanges.
ICICI Bank shares ended up 1.24% on Bombay stock exchange today at Rs 290.8, while ICICI Prudential Life shares fell 2.77% to Rs 410.25 at the end of the day. A rough calculation shows that 2.87 crore shares are worth about Rs 1,177 crore at Wednesday’s closing price.
The insurance company is a joint venture between ICICI Bank and the US-based Prudential Corporation Holdings limited. As on March 31, 2018 ICICI Bank held 54.88 per cent stake in the Joint Venture while, Prudential’s stake was at 25.83 per cent. Rest of the equity in the company is held by public and institutional investors.
ICICI Prudential Life came up with its initial public offer (IPO) in September 2016 to become the first insurance company to be listed on BSE and NSE. It began its operations in fiscal year 2001. The company reportedly has an Asset under Management of Rs. 1,395.3 billion as on 31st March 2018.