ICICI Lombard buys stake worth ₹563 crore in ITC and Axis Bank

ICICI Lombard General Insurance Company Ltd has announced a major investment, acquiring shares worth ₹563 crore in ITC Limited and Axis Bank Limited. This transaction was completed during market hours on November 6, 2024.

The insurer has invested ₹245 crore to acquire a 0.05% stake in ITC, one of India's largest and oldest conglomerates. Founded in 1910, ITC operates in sectors like FMCG, cigarettes, hotels, paperboards, and agribusiness. The company reported a turnover of ₹76,840 crore for the financial year 2023-24. Its market capitalisation stood at ₹60,210 crore as of November 6, 2024. ICICI Lombard clarified that the acquisition is part of its routine investment activities and doesn’t involve any related-party transactions.

ICICI Lombard's share price was trading in red, down 0.67 per cent at ₹1,920.70 on November 7 at 9:48 am on BSE. The company enjoys a market capitalisation of ₹95,079.36 crore. ICICI Lombard's stock price hit its 52-week high on September 23, 2024, at ₹2,301.90 as per NSE.

ICICI Lombard acquires 0.10% stake in Axis Bank

Additionally, ICICI Lombard invested ₹318 crore to acquire a 0.10% stake in Axis Bank, one of India’s top private-sector banks. Axis Bank, founded in 1993, serves a wide range of customers, including large corporations, SMEs, and retail clients. It posted a turnover of ₹1,37,989 crore in the last fiscal year and currently has a market cap of ₹36,110 crore. This transaction was also conducted at arm's length and forms part of ICICI Lombard's regular investment strategy.

These acquisitions were made in cash, with ICICI Lombard describing them as “in the ordinary course of the Company’s business.” The insurance company added that both transactions adhere to regulatory requirements. The company emphasised that while its promoter and group entities might have some business transactions with ITC and Axis Bank, these are conducted independently at fair market value.