IDBI Bank share climbs 4% on sale of 23% stake in JV to Ageas Insurance

IDBI Bank share rose 4% in trade today after the lender completed stake sale of 23% in joint venture IDBI Federal Life Insurance Company to Ageas Insurance International NV.

The bank sold 18,40,00,000 shares of IDBI Federal to Ageas for a consideration of Rs 507.10 crore. With this, IDBI Bank's shareholding in the JV now stands at 25% from the earlier 48%.

Reacting to the development, the share rose 4.34% to Rs 32.45 against previous close of Rs 31.10  on BSE.  The stock has gained 4.53% in the last 2 days. The share stands higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.

The stock has fallen 13% in one year and risen 3.86% since the beginning of this year. The stock has lost 16% in one month.

Market cap of the firm rose to Rs 34,730 crore.

Sensex begins 2021 with record high, Nifty ends above 14K for first time

Total 18.69 lakh shares changed hands on BSE today. Later, the stock closed 3.86% higher at Rs 32.30.

IDBI Bank said, "Following this transaction, the joint venture has been rebranded as Ageas Federal Life Insurance Company Limited." In August last year, the bank inked a Share Purchase Agreement to sell 27% of its stake in its joint venture arm IDBI Federal to other JV partners viz. 23% to Ageas Insurance International NV (Ageas) and 4% to The Federal Bank (Federal Bank).