RBI approves ICICI AMC and ICICI Life to acquire up to 9.95% of IndusInd Bank Ltd

The Reserve Bank of India ("RBI") vide its letter dated December 27, 2023 has accorded its approval to ICICI Prudential Asset Management Company Ltd. ("ICICI AMC") and ICICI Prudential Life Insurance Company Ltd. ("ICICI Life") (collectively referred to as "applicants") for acquiring "aggregate holding" up to 9.95% of the paid-up share capital or voting rights in IndusInd Bank Limited ("the Bank"). The aforesaid RBI approval has been granted with reference to the application made by the applicants to the RBI.

The aforesaid approval granted by the RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable.

The RBI, while granting the above referred approval has also conveyed that if the applicants fail to acquire major shareholding within a period of one year from the date of the aforesaid RBI letter, the approval shall stand cancelled. Further, the applicants shall ensure that the "aggregate holding" in the Bank does not exceed 9.95% of the paid-up share capital or voting rights of the Bank, at all times. If the "aggregate holding" falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the total paid-up share capital or voting rights of the Bank.

Shares of IndusInd Bank Limited was last trading in BSE at Rs. 1610.20 as compared to the previous close of Rs. 1596.90. The total number of shares traded during the day was 40705 in over 2277 trades.

The stock hit an intraday high of Rs. 1618.80 and intraday low of 1592.10. The net turnover during the day was Rs. 65260691.00.

Source : Equity Bulls

Keywords

IndusIndBank INE095A01012 RBIApproval ICICIAMC ICICILife StakeAcquisition