The board of directors has approved an increase in the stake in the company, in several tranches up to 4.0%, of which 2.5% will be purchased by ICICI Bank, the insurer said in a press release to the stock exchanges on 28 may.
ICICI Bank, India’s second-largest bank by market value, has decided to increase its stake in its listed non-life insurance joint venture with Lombard to more than 50%, officially making ICICI Lombard a subsidiary. Typically, sponsors who increase their stake in the company cause the stock price to rise.
The board of directors has approved an increase in the stake in the company, in several tranches up to 4.0%, of which 2.5% will be purchased by ICICI Bank, the insurer said in a press release to the stock exchanges on 28 may. ICICI Bank’s stake in ICICI Lombard stood at 48.02% at the end of March 2023.
In March, when the Reserve Bank of India (RBI) granted ICICI Bank more time to decide on its Rs 5,400 crore stake (market cap as of May 26), the insurer gained more than 3%.
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