ICICI Lombard buys stakes worth Rs 563 crore in ITC, Axis Bank

ICICI Lombard General Insurance Company Ltd announces a major investment, acquisition worth $ITC Limited and Axis Bank Limited have Rs 563 crore. The transaction was disclosed under SEBI Section 30 and completed during trading hours on November 6, 2024.

Insurance companies have invested $245 crore to acquire 0.05% stake in ITC, one of India’s largest and oldest conglomerates. Founded in 1910, ITC operates in industries such as FMCG, cigarettes, hotels, cardboard and agribusiness. The company reported a turnover of $76,840 crore in FY 2023-24 and the current market capitalization is $602.1 billion as on November 6, 2024. ICICI Lombard clarified that the acquisition is part of its daily investment activities and does not involve any related transactions.

ICICI Lombard shares were trading in the red, down 0.67% to $November 7, 9:48 am, BSE 1,920.70. The company’s market capitalization is $95,079.36 Crores. ICICI Lombard’s share price hit a 52-week high on September 23, 2024, $2,301.90, as per NSE.

ICICI Lombard acquires 0.10% stake in Axis Bank

Additionally, ICICI Lombard has invested in $Acquired 0.10% stake in Axis Bank, one of India’s top private sector banks, for Rs 318 crore. Established in 1993, Axis Bank serves a wide range of customers, including large corporates, SMEs and retail customers. It reported turnover of $The market capitalization in the last financial year was Rs 1,37,989 crore and the current market capitalization is $361.1 billion rupees. This transaction was also conducted on an arm’s length basis and is part of ICICI Lombard’s regular investment strategy.

The acquisitions were made for cash and ICICI Lombard described them as “in the ordinary course of the company’s business”. The insurer added that both transactions complied with regulatory requirements. The company stressed that while its promoters and group entities may have some business transactions with ITC and Axis Bank, these transactions are done independently and at fair market value.