ICICI Bank Ltd. today said its board has approved the sale of up to 2 percent stake in ICICI Prudential Life Insurance Company Ltd., a move that will bring the promoter holding in the insurer closer to the regulatory limit.
The sale of nearly 2.87 crore shares can be in one or more tranches, including through an offer-for-sale by promoters through stock exchange mechanisms, the private lender said in a filing. The floor price for the offer for sale has been fixed at Rs 390 apiece. The share sale is expected to fetch ICICI Bank nearly Rs 1,200 crore at current market price.
ICICI Bank and Prudential Corp. together hold 80.71 percent stake in ICICI Prudential Life Insurance, according to exchange filings. That means the promoter holding in ICICI Prudential needs to be lowered by 5.71 percent to comply with a minimum 25 percent public shareholding requirement of the Securities and Exchange Board of India.
In September 2016, the lender launched the initial public offering of its life insurance arm, which subscribed 10.48 times. Shares of ICICI Prudential Life Insurance currently trade about 23 percent higher than the issue price of Rs 334.
The stock closed 2.77 percent lower compared to a 0.13 percent rise in the benchmark S&P BSE Sensex.