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Bharti Enterprises Sells ICICI Lombard Shares for ₹663 Crore: Transaction Overview

Bharti Enterprises, led by Sunil Bharti Mittal, divested 38.50 lakh shares of ICICI Lombard General Insurance Company for ₹663 crore through open market transactions. This sale reduced Bharti Enterprises’ stake in ICICI Lombard from 2.43% to 1.63%. Concurrently, ICICI Bank, the promoter, increased its stake in ICICI Lombard to 51.7% by purchasing 21 lakh shares.

Transaction Details

  • 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. ICICI Bank, the promoter, acquired additional shares.
  • Deal Structure: The sale comprised 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 for ₹361.72 crore, enhancing its stake in ICICI Lombard.

Impact on Stakeholding

  • Bharti Enterprises: After the sale, Bharti Enterprises’ shareholding in ICICI Lombard decreased from 2.43% to 1.63%.
  • ICICI Bank: The purchase of 21 lakh shares increased ICICI Bank’s stake in ICICI Lombard from 51.27% to 51.7%.

Market Reaction

Following the transactions, ICICI Lombard’s shares experienced a decline of 4.05%, closing at ₹1,651.05 apiece on the BSE.

Previous Transactions and Subsidiary Status

Earlier in February, ICICI Bank had acquired additional stakes in ICICI Lombard, consolidating it as a subsidiary. In August 2020, ICICI Lombard had acquired Bharti AXA General Insurance, leading to Bharti Group receiving ICICI Lombard shares.

Bharti Enterprises Sells ICICI Lombard Shares for ₹663 Crore: Transaction Overview_4.1