ICICI Bank to sell 2.21% stake in ICICI Securities via OFS
ICICI Bank, the largest private sector lender, on Tuesday, received board approval to sell up to 71.21 lakh shares (2.21% equity) in ICICI Securities through offer for sale (OFS) to meet MPS (minimum public shareholding) norm.
The Board of Directors of the Bank, at its meeting, approved the stake sale in accordance with applicable law, towards compliance with the requirement of minimum public float.
The floor price for the OFS has been fixed at Rs 440 per share, a 6% discount to Tuesday’s closing price of Rs 461.
About 10% of the offer is reserved for retail investors who can subscribe on Thursday while non retail investors can put their bids on Wednesday.
ICICI Bank held 77.2% stake in ICICI Securities as on September 30, 2020. ICICI Bank is selling the shares to comply with the minimum public shareholding norms. ICICI Securities had come with an IPO in March 2018 at an issue price of Rs 520 per share. All newly listed companies will have to comply with 25% public holding norms within three years of listing.
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