ICICI Bank stock gains 2% on stake sale

Mumbai: Shares of ICICI Bank on Tuesday surged nearly 2 percent on the bourses after the company said it will sell 6 per cent stake in its life insurance arm ICICI Prudential Life for about Rs 1,950 crore.

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 indirectly wholly-owned subsidiary of Singapore-based investment company Temasek."

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

Reacting to the news, shares of ICICI Bank opened on a positive note at Rs 271.20, then surged 1.88 percent to reach an early high of Rs 272.25 on the BSE.

Similar movement was witnessed on the NSE as well, where the stock opened at Rs 271.70, then jumped 1.90 percent to touch an early high of Rs 272.35.

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.