Bharti Enterprises Divests ICICI Lombard Shares Valued at INR 663 Crore

In a significant move within the Indian insurance sector, Bharti Enterprises, led by Sunil Bharti Mittal, divested shares of ICICI Lombard General Insurance Company, accumulating a substantial Rs 663 crore through open market transactions. This sale saw a diverse group of buyers stepping in, including prominent names such as Axis Mutual Fund MF, Aditya Birla Sun Life MF, Invesco MF, Morgan Stanley Asia Singapore, Societe Generale, Goldman Sachs Singapore, and Blackstone Aqua Master Sub-Fund.

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The transaction involved Bharti Enterprises Ltd offloading approximately 38.50 lakh shares, which equates to a 0.8 per cent stake in the Mumbai-based insurer. These shares were sold at an average price of Rs 1,722.5 each, culminating in a deal size of Rs 663.16 crore. Post-sale, Bharti Enterprises' shareholding in ICICI Lombard was reduced to 1.63 per cent from the previous 2.43 per cent.

Interestingly, ICICI Bank emerged as a significant buyer in this transaction by purchasing 21 lakh shares or a 0.4 per cent stake in its subsidiary ICICI Lombard for Rs 361.72 crore. This acquisition increased ICICI Bank's stake in the insurer to 51.7 per cent from 51.27 per cent.

Following these transactions, shares of ICICI Lombard General Insurance Company experienced a downturn, closing at Rs 1,651.05 apiece on the BSE, marking a decline of 4.05 per cent.

This series of transactions is part of a broader narrative involving ICICI Lombard and its stakeholders. Earlier in the year, on February 27, ICICI Bank had acquired an additional 1.4 per cent stake in ICICI Lombard for Rs 1,356 crore. Subsequently, on February 29, the bank further increased its stake by purchasing an additional 25.14 lakh shares for Rs 431 crore. These strategic moves resulted in ICICI Lombard becoming a subsidiary of ICICI Bank.

The relationship between Bharti Enterprises and ICICI Lombard dates back to August 2020 when ICICI Lombard acquired Bharti AXA General Insurance. As part of this all-stock deal, the Bharti Group received shares in ICICI Lombard, marking a pivotal moment in the insurance industry's consolidation landscape.

This recent divestiture by Bharti Enterprises not only highlights the dynamic nature of shareholding patterns within India's insurance sector but also underscores the strategic realignments taking place among leading market players.