ICICI Bank on Friday announced that its board has approved raising an additional 2% stake in its asset management arm ICICI Prudential Asset Management Company. ICICI Bank share price was trading over a percent higher today. The banking stock gained as much as 1.06% to ₹1,454.60 apiece on the BSE.
The board of directors of the bank approved purchase of up to 2% additional shareholding in the ICICI Prudential Asset Management Company, ICICI Bank said in a regulatory filing on June 27.
This stake purchase in ICICI Prudential Asset Management Company will primarily be towards maintaining the bank’s majority shareholding in the event of grant of stock-based compensation by the company, it said.
This will be subject to receipt of requisite approvals, it added.
In February, ICICI Bank had announced its intention to retain majority holding in ICICI Prudential Asset Management Company even though its joint venture partner plans listing and partial divestment of its stake in the fund house.
ICICI Bank holds 51% stake in ICICI Prudential Asset Management Company while the remaining 49% is with its joint venture partner UK-based Prudential PLC.
The board also approved amendment to the ICICI Bank ADR Deposit Agreement, subject to approval of the RBI, to grant voting rights pertaining to the deposited securities to the registered American Depository Shares (ADS) holders.
“The voting rights by the registered ADS holder would be subject to it demonstrating that its holdings are in conformity with Section 12B of the Banking Regulation Act, 1949 read with applicable Master Direction & Guidelines, as amended from time to time,” the private lender said.
ICICI Bank Share Price Performance
ICICI Bank share price has remained largely flat over the past month but recorded a 9% gain in the last three months. On a year-to-date (YTD) basis, the banking stock has risen 13%, and it is up 19% over the past one year.
Over the longer term, ICICI Bank share price has delivered strong returns — surging 102% in three years and delivering multibagger gains of 316% in the last five years.
At 2:15 PM, ICICI Bank share price was trading 0.99% higher at ₹1,453.55 apiece on the BSE.
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