Shares of ICICI Bank rose over 3 percent to Rs 405.70 on BSE after the private lender announced that it sold 64.42 lakh equity shares, representing 2 percent of the share capital, in ICICI Securities Limited for Rs 310 crore through an open market sale.
In a stock exchange filing on Friday, ICICI Bank said, "As a step towards ICICI Securities Limited's (the Company") compliance with the requirements of minimum public shareholding pursuant to Rules 19(2)(b) and 19(A) of the Securities Contract (Regulations) Rules, 1957 and Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ICICI Bank Limited (the "Bank"), the promoter of the Company, has today divested 6,442,000 equity shares of face value of Rs. 5 each of the Company, representing 2.00% of the equity share capital of the Company at June 30, 2020, on the stock exchange for an approximate total consideration of Rs. 3.10 billion, through an open market sale, in accordance with the circular bearing no. SEBI/HO/CFD/CMD/CIR/P/43/2018 dated February 22, 2018, issued by the Securities and Exchange Board of India."
"Following this divestment, the Bank's shareholding in the Company stands at 77.22%," the bank added.
The sale was a part of SEBI's regulatory requirement to increase the minimum public shareholding to 25 percent. ICICI Bank has time up to March 2020 to bring down its stake in its subsidiary to at least 75 percent to become compliant.