For the quarter ended March 2023, promoter ICICI Bank’s shareholding in the general insurance company stood at 48.02%.
Insurance regulator Irdai has given its approval to SBI Mutual Fund, along with its group entities or body corporate under the same management, for acquiring up to 10% of the total paid up equity share capital of ICICI Lombard General Insurance through market purchase.
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“…we hereby inform you that Insurance Regulatory and Development Authority of India (Irdai) vide its letter dated June 12, 2023, has accorded its approval to SBI Mutual Fund along with its group entities or body corporate under the same management for acquiring up to 10% of the total paid up equity share capital of the company through market purchase,” ICICI Lombard General Insurance said in a stock exchange filing.
For the quarter ended March 2023, promoter ICICI Bank’s shareholding in the general insurance company stood at 48.02%. SBI Mutual Fund through various schemes held 4.62% in the insurance company.
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Irdai advised SBI Mutual Fund to ensure that the total shareholding of SBI Mutual fund along with its group entities or body corporate under the same management should not exceed 10% of the total paid-up equity share capital of ICICI Lombard. “Further, the approval of Irdai is valid for a period of one year from the date of Irdai approval letter,” according to the stock exchange filing.
This approval is subject to compliance with applicable provisions of IRDAI (Registration of Indian Insurance Companies) Regulations, 2022, Indian Insurance Companies (Foreign Investment) Rules, 2015, Insurance Act/Rules/Regulations, Orders, Circulars etc.
On Tuesday, shares of ICICI Lombard rose 0.44% to close at Rs 1220 apice on BSE.
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The board of directors of ICICI Bank last month approved an increase of its shareholding in the general insurance company in multiple tranches. The bank said it would increase the additional shareholding by up to 4%, as permissible under applicable law. It would acquire at least 2.5% stake out of the 4% additional shareholding before September 9, 2024.
According to brokerage firm Motilal Oswal Financial Services, ICICI Bank’s decision to acquire at least 2.5% stake in ICICI Lombard before September 9, 2024 “removes a key overhang on the stock”.
The insurer reported a 39.82% year-on-year rise in its net profit to Rs 436.96 crore for the fourth quarter of the last financial year even as it saw a muted 6.78% y-o-y growth in gross premiums underwritten during the period.
