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Bharti Enterprises Sells ICICI Lombard Shares for Rs 663 Crore | Transaction Overview: Bharti Enterprises, led by Sunil Bharti Mittal, has recently sold a 0.8% stake in ICICI Lombard for Rs. 663 crore. This move has decreased Bharti Enterprises’ ownership in ICICI Lombard to 1.63%. The company sold 38.50 lakh shares of ICICI Lombard General Insurance Company through open market transactions. At the same time, ICICI Bank, the promoter, has increased its stake in ICICI Lombard to 51.7% by purchasing 21 lakh shares. This strategic shift marks Bharti Enterprises’ divestment of shares, resulting in a reduced stake, while ICICI Bank strengthens its position as the majority stakeholder.
Bharti Enterprises Sells ICICI Lombard Shares for Rs 663 Crore: Transaction Overview
The sale of 38.50 lakh shares by Bharti Enterprises has significantly lowered its stake in ICICI Lombard from 2.43% to 1.63%. Meanwhile, ICICI Bank’s acquisition of 21 lakh shares has increased its stake to 51.7%, making it the majority shareholder. Led by Sunil Bharti Mittal, Bharti Enterprises’ divestment of shares in ICICI Lombard marks a strategic decision aimed at optimizing the company’s investment portfolio. This move allows ICICI Bank to strengthen its position within ICICI Lombard, reflecting its commitment to the insurance sector.
Details of the Transaction involving Bharti Enterprises and ICICI Lombard
- Seller and Buyer Dynamics: Bharti Enterprises sold shares to various entities, including Axis Mutual Fund, Aditya Birla Sun Life MF, Invesco MF, Morgan Stanley Asia Singapore, Societe Generale, Goldman Sachs Singapore, and Blackstone Aqua Master Sub-Fund. Meanwhile, ICICI Bank, as the promoter, bought additional shares.
- Deal Structure: The sale involved nine separate block deals on the BSE, with shares priced at an average of ₹1,722.5 each, totaling ₹663.16 crore. ICICI Bank purchased shares worth ₹361.72 crore, increasing its stake in ICICI Lombard.
Change in Stake Ownership
- Bharti Enterprises: Following the sale, Bharti Enterprises now holds 1.63% of ICICI Lombard, down from 2.43%.
- ICICI Bank: By acquiring 21 lakh shares, ICICI Bank’s stake in ICICI Lombard increased from 51.27% to 51.7%.
Market Response
After the transactions, ICICI Lombard’s shares fell by 4.05%, ending at Rs. 1,651.05 each on the BSE.
Past Transactions and Subsidiary Positions
In February, ICICI Bank acquired more stakes in ICICI Lombard, solidifying its status as a subsidiary. Additionally, in August 2020, ICICI Lombard acquired Bharti AXA General Insurance, resulting in the Bharti Group receiving shares in ICICI Lombard.
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