ICICI Bank terminates arrangement with investors for subscription in new subsidiary

The Board of Directors of the Bank at its meeting held on March 1-3, 2007 had, subject to the receipt of all regulatory approvals, approved the transfer of ICICI Bank’s equity shareholding in ICICI Prudential Life Insurance Company Ltd, ICICI Lombard General Insurance Company Ltd, ICICI Prudential Asset Management Company Ltd and ICICI Prudential Trust Ltd to a proposed new subsidiary.

Further, as intimated vide a stock exchange notification on June 12, 2007, ICICI Bank had received definitive offers from investors for subscription to equity shares of the proposed new subsidiary and for entering into definitive agreements for this purpose. The arrangement was subject to receipt of regulatory and other approvals including that of the Reserve Bank of India, the Insurance Regulatory and Development Authority and the Foreign Investment Promotion Board, and was to terminate failing receipt of all such approvals within a mutually agreed date. As the agreed date has elapsed and this requirement has not been satisfied, the arrangement with respect to the offers stands terminated.

The stock closed the day at Rs.1197.75, up by Rs.52.10 or 4.55%. The stock hit an intraday high of Rs.1211 and low of Rs.1130.

The total traded quantity was 583559 compared to 2 week average of 1208336.

Source : Equity Bulls

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