Bank stock in green after an agreement to acquire 9.99% stake in a healthcare services company

by Aditya Kumar

Shares of ICICI Bank Limited, a large-cap private sector bank, saw some bullish movements after the announcement of an agreement to acquire a stake in a healthcare services company. The bank’s stocks started their trading session at Rs 956.55 and currently trade at Rs 959.50, with a flat movement compared to the previous closing levels.

According to a regulatory filing with the Bombay Stock Exchange, ICICI Bank has entered into an agreement with Quantum CorpHealth Private Limited (QCPL) to invest in the equity shares and compulsorily convertible preference shares (CCPS) of the latter. QCPL is a healthcare services platform that caters to corporates and enterprises, offering services such as annual health checks, pre-employment health checks, and occupational health centers.

ICICI Bank will invest Rs 49.9 million for a 9.99 percent stake in QCPL, with the acquisition expected to be completed by the end of October 2023. The bank will hold the shareholding in QCPL through a subscription of 100 equity shares and 3,33,200 CCPS.

The bank’s financial performance in recent quarters has been consistent, with total income averaging at Rs 52,500 crores. The net profit numbers have also shown an increase from Rs 9,985.22 crores in Q4FY22-23 to Rs 10,763.41 crores in Q1FY23-24. Additionally, the net non-performing assets (NPA) ratio has consistently reduced, while the net interest margin (NIM) has increased.

The latest shareholding data shows that Domestic Institutional Investors (DIIs) hold a 45.26 percent stake in the bank, followed by Foreign Institutional Investors (FIIs) with a 44.52 percent stake.

ICICI Bank Limited, established in 1994, is a commercial bank that provides various services including commercial lending, wealth management, and investment banking. The bank serves a wide range of sectors such as financial services, healthcare, infrastructure, and technology. Its lending portfolio includes term loans, working capital loans, cash credit, and overdrafts.

In conclusion, the agreement between ICICI Bank and Quantum CorpHealth Private Limited to acquire a stake in a healthcare services company has generated positive movements in the bank’s stocks. ICICI Bank’s consistent financial performance and diverse portfolio make it an attractive investment opportunity in the private sector banking space.

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