ICICI Bank's board approves 19% stake sale in ICICI Merchant Services

ICICI Bank’s board of directors has approved a 19 per cent stake sale in the lender’s associate, ICICI Merchant Services Private Ltd, subject to necessary approvals, the bank said on Friday in its stock exchange filing.

 

In the exchange filing, the bank said, “The Board of Directors of ICICI Bank Limited (“the Bank”), at its meeting held today, approved a proposal for sale of 19% stake held in ICICI Merchant Services Private Limited (“IMSPL” or “the Company”), an associate of the Bank, subject to receipt of requisite approvals. Consequent to the completion of this transaction, IMSPL will cease to be an associate of the Bank.”

 

 

The stake, which will be sold to First Data Holdings 1 (Netherlands) BV, is expected to generate funds worth Rs 160 crore to Rs 190 crore for the bank. First Data Holdings is a global leader in electronic commerce and payment services.

 

Upon completion of the transaction, IMSPL will no longer be classified as an associate entity of ICICI Bank, as per the exchange filing. The sale, which is contingent on receiving the necessary regulatory and statutory approvals, is expected to be executed before June 30, 2025.

 

In its exchange filing, ICICI Bank said IMSPL reported revenue from operations amounting to Rs 475 crore, with net worth standing at Rs 645 crore in the financial year ended March 31, 2024.

 

On Friday, shares of ICICI Bank rose 1.22 per cent to Rs 1,345.10 on the BSE.