Federal Bank Ltd updates on acquisition of shares of IDBI Federal Life Insurance Co Ltd

The Federal Bank Limited has entered into an agreement to purchase up to 4% stake in IDBI Federal Life Insurance Co Ltd., from IDBI Bank at a price not exceeding Rs.27.56 per equity share. The transaction is subject to regulatory approvals. The Bank currently holds 26% stake in IFLIC, making it an Associate of the Bank. Post purchase the total stake will increase up to 30%.

Federal Bank holds 26% stake in the entity being acquired. This acquisition does not fall under related party transaction(s) as the purchase is a secondary market transaction between the Bank and IDBI Bank.

Shares of FEDERAL BANK LTD. was last trading in BSE at Rs.52.35 as compared to the previous close of Rs. 52.3. The total number of shares traded during the day was 2560910 in over 4397 trades.

The stock hit an intraday high of Rs. 53.3 and intraday low of 52.2. The net turnover during the day was Rs. 134915579.

Shares of IDBI BANK LTD. was last trading in BSE at Rs.38.95 as compared to the previous close of Rs. 38.55. The total number of shares traded during the day was 548031 in over 1159 trades.

The stock hit an intraday high of Rs. 40.25 and intraday low of 38.6. The net turnover during the day was Rs. 21480668.

Source : Equity Bulls

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