ICICI Bank after bearing the shocks of COVID-19 is trying to get back to the market. Almost all the banks are trying to hand at different new things to reach the pre-covid levels and establish their supremacy again. The bank recently bought a 2 percent stake in India’s leading insurance company, LIC. The bank has further bought 9.09 percent shares in the educational technology venture MyClassboard Educational Solutions Pvt. Ltd. (MESPL) at a whopping amount of Rs. 4.5 crores. The Bank is expected to hold about a 9.09 percent stake in MESPL by the accession of 100 equity shares. The bank will also hold 1,04,890 cumulative shares on a completely diluted basis.
The Bank in a statement said that they are most likely to complete the transaction by the end of February 2021. In the case of a high percentage of shares, it is important to get regulatory approval. However, in situations such as that of ICICI Bank and MyClassboard Educational Solutions Pvt. Ltd. (MESPL), they do not need prior approval since the shareholding is less than 10%. The Edtech platform has started its functioning in the year 2009 and has had a reported turnover of Rs. 12 Crore in the financial year 2020 and a Rs. 95.8 crore turnover in the financial year 2019 making it ideal for the bank to invest in it. ICICI Bank with this investment is hoping to make a mark and see more growth.
Life Insurance Corporation (LIC) sold 13.8 crore shares out of which 2.002% stake was credited to ICICI Bank through open market transactions from November 27 to December 24, 2020. India’s leading Insurance company, LIC’s holding was 8.74% which has now dropped to 6.74%. On Monday, the shares of ICICI Bank closed at 1.28% higher on Rs. 520.20 on the BSE.