ICICI Bank Buys Additional Stake In ICICI Lombard GIC, Making It A Subsidiary

ICICI Bank Ltd. increased its stake in ICICI Lombard General Insurance Co. on Feb. 29 through an open market transaction. This comes days after the private lender bought 1.65% stake in the insurer, comprising 80.9 lakh shares, for Rs 1,356 crore.

ICICI Bank, the insurer's promoter, bought 25.1 lakh shares for Rs 431 crore, according to an exchange filing.

The promoter bank, as of Feb. 27, 2024, held 49.5% stake in the company and post the acquisition of the additional stake, ICICI Lombard GIC has become a subsidiary of ICICI Bank.

The bank had then said in exchange filings that its board of directors approved increasing the shareholding in ICICI Lombard General Insurance by 400 basis points in multiple tranches.

The bank had received approval from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India for the deal.

Shares of ICICI Lombard General Insurance fell as much as 0.26% to close at Rs 1,724.45 apiece on Thursday. This compares with a 0.14% advance in the NSE Nifty 50 Index.