ICICI Lombard shares jump 14% after ICICI Bank board okays raising stake to 4%

ICICI Lombard General Insurance shares shot up over 14% in Monday’s early trade after ICICI Bank said it would acquire an additional 4% shares in the general insurance company in multiple tranches.

ICICI Bank will acquire at least 2.5% stake out of the above 4% before September 9, 2024, the company said in its filing to the stock exchanges.

Today’s gains follow the uptick in stock prices over the previous two trading sessions.

Shares of ICICI Lombard General Insurance reversed their losses after hitting a 52-week low of Rs 1,049 on the NSE in March. The stock has been a laggard this year and has underperformed Nifty50. The 1-year returns have been negative 4% versus 12% upside seen in the benchmark 50-stock index.

However, in the last one month, it has gained by more than 13%. The stock has been relatively volatile and trades with a beta of 1.1, according to Trendlyne.

The largecap stock with a market capitalisation of over Rs 60,568 crore was trading with significant volumes as more than 18 lakh shares were on the block.

It was also the top gainer in the Nifty Financial Services index. The index was trading at 19,580.65, up by 210.15 points or 1.08% from Friday's closing level.

The banking and financial services stocks were largely trading in the green on Monday. Nifty Bank was up 0.81% and hit an all-time high of 44,458.95.

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