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ICICI Lombard Boosts Stake in Axis Bank with ₹2.36 Billion Investment
Last Updated: 8th October 2024 - 12:37 pm
In a stock exchange filing on Monday, October 7, ICICI Lombard General Insurance Company announced that it had increased its shareholding in Axis Bank. As of October 7, 2024, the insurance company's total investment cost was ₹2.36 billion. The acquisition was made during market hours on October 7, and ICICI Lombard stated that no regulatory approvals were needed. The investment into Axis Bank was made with cash consideration. ICICI Lombard clarified that this transaction does not fall under the category of related party transactions, even though entities within its promoter group may have other business dealings with Axis Bank at arm's length.
Axis Bank, which has a market value of ₹3.56 lakh crore, has seen its share price climb 16% over the previous year, lagging the NSE Nifty 50, which has gained 27%. The Nifty fell 5.5 % in the last two weeks, whereas the private bank shares fell by 10% over the same time. The share price of Axis Bank decreased by 2.3 % to close at ₹1,151.3 during the most recent trading session.
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After HDFC Bank and ICICI Bank, Axis Bank is the third-largest private sector lender in India. It was founded in 1993. It provides a wide range of financial services to the retail, corporate, and agricultural industries. In the most recent fiscal year 2023–24, the bank recorded a turnover of ₹1.38 lakh crore, an increase from ₹1.06 lakh crore the year before.
To Summarize
ICICI Lombard announced a ₹2.36 billion investments in Axis Bank shares during market hours on October 7, 2024, without needing regulatory approvals. Axis Bank, India’s third-largest private sector lender, has underperformed against the Nifty 50, with shares up 16% over the past year. The recent acquisition by ICICI Lombard is not classified as a related party transaction, though other group entities have separate business dealings with the bank.
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