InvestorQ : What was the reason for ICICI Bank selling a stake in ICICI Lombard?
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What was the reason for ICICI Bank selling a stake in ICICI Lombard?

Answer
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Arti Chavan answered.
3 months ago


ON 19 June, ICICI Bank sold 3.96% stake in ICICI Lombard for Rs 2,250 crore. ICICI Lombard is the general insurance arm of the ICICI group. ICICI needs the cash to strengthen its balance sheet in light of the pandemic. In fact, bad loans are expected to worsen in the months to come as the EMI moratorium is lifted.

ICICI Bank sold a total of 1.80 crore shares of ICICI Lombard General Insurance which represented 3.96% of equity capital for a consideration of Rs.2250 crore. That implies a price of Rs.1250 per share, which is around 2% discount to the market price. After the sale, ICICI Bank will now hold just 51.9% stake in ICICI Lombard General Insurance.