ICICI Bank shares give up early gains; settle flat

Mumbai: Shares of ICICI Bank Tuesday gave up early gains after surging nearly 2 percent during the day as the company said it will sell stake in its life insurance arm ICICI Prudential Life for about Rs 1,950 crore.

Shares of ICICI Bank which opened on a positive note and surged 1.88 percent to reach an early high of Rs 272.25 on the BSE during the day settled almost flat at Rs 267.35, up 0.06 percent.

On the NSE, the shares of ICICI Bank closed for the day at Rs 267.85, up 0.22 percent. During the day, the stock opened at Rs 271.70, then jumped 1.90 percent to touch an early high of Rs 272.35.

On the volume front, 12.38 lakh shares got traded on the BSE, and 1.63 crore shares exchanged hands on the NSE.

In a statement, ICICI Bank had yesterday said the board has decided to sell "4 percent to Premji Invest and its affiliates and 2 percent to Compassvale Investments Pte Ltd, an indirect wholly-owned subsidiary of Singapore-based investment company Temasek."

Premji Invest is the investment arm of Wipro Group chairman Azim Premji.

The proposed transaction values the company at Rs 32,500 crore, reflecting substantial value created by the business since inception, the company said.

Upon completion of the transaction, ICICI Bank will hold around 68 percent share of the company.

Prudential Plc, the foreign joint venture partner will maintain its current holding of around 26 percent.