Shares of this private sector Bank under the ‘large-cap’ category showed some bullish movements after entering into an agreement to acquire a stake in a healthcare services company.
With a market capitalization of around Rs 6.70 lakh crores, the stocks of ICICI Bank Limited started their trading session on Friday at Rs 956.55 and currently trade at Rs 959.50, a flat movement as compared to the previous closing levels of Rs 959.35 apiece.
The company, in a recent regulatory filing with the Bombay Stock Exchange (BSE) dated 21st September 2023, intimated that the Bank has entered into an agreement with ‘Quantum CorpHealth Private Limited’ (QCPL) to invest in the equity shares as well as compulsorily convertible preference shares (CCPS) of the latter.
Quantum CorpHealth Private Limited is a healthcare services platform catering services such as annual health checks, pre-employment health checks, occupational health centres, and many other ancillary services for corporates as well as enterprises.
ICICI Bank will perform the above-mentioned transaction via a cash consideration of Rs 49.9 million for a 9.99 percent stake in QCPL. The indicative period for the acquisition is decided to be by the end of October 2023.
Post-investment, ICICI Bank will hold the mentioned shareholding in the healthcare services company via a subscription of 100 equity shares and 3,33,200 CCPS.
During recent quarters, the Bank’s financial performance has been consistent with the total income staying at average levels of Rs 52,500 crores. Moreover, the net profit numbers of the Bank increased from Rs 9,985.22 crores during Q4FY22-23 to Rs 10,763.41 crores during Q1FY23-24.
Having a glance at the operational ratios reported by the Bank, the net non-performing assets (NPA) ratio has consistently reduced with the most recent movement being from 0.81 percent during FY21-22 to 0.51 percent during FY22-23. Moreover, the net interest margin (NIM) of the Bank increased from 3.25 percent to 3.79 percent keeping the timeframe the same.
The latest shareholding data exhibits the Domestic Institutional Investors (DIIs) holding a 45.26 percent stake in the Bank followed by Foreign Institutional Investors (FIIs) holding a 44.52 percent stake.
Founded in 1994, ICICI Bank Limited is a commercial bank providing a variety of services such as commercial lending, wealth management, investment banking, etc.
The Bank caters to a wide range of sectors including financial services, healthcare, infrastructure, technology, and many more. The lending portfolio of the Bank comprises term loans, working capital loans, cash credit, overdrafts, etc.
Written by Amit Madnani
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