ICICI Lombard gains 3 per cent after IRDAI approves acquisition of Bharti AXA General
Published On: Tuesday, December 1, 2020 | By: Team KnowMyStock
Shares of ICICI Lombard General Insurance company gained 3 per cent of Rs. 1499.90 and hit a 52-week high after the Insurance Regulatory and Development Authority of India (IRDAI), on Friday approved, in principle, under Section 35 to 37 of the Insurance Act, 1938 the acquisition of the non-life insurance business of Bharti AXA General Insurance Company by ICICI Lombard General Insurance. The deal will create India's third-largest non-life insurance company, with a combined annual premium of ₹ 16,447 crore and a market share of nearly 8.7 per cent. The board of ICICI Lombard had approved the scheme of arrangement at its meeting held on August 21, 2020. Currently, Bharti Enterprises owns 51 per cent in Bharti AXA General. The firm has a joint venture with French firm AXA which owns 49 per cent stake. With the deal with ICICI Lombard in place, Bharti and AXA will be public shareholders in the combined entity.
Based on the share exchange ratio accepted by the respective boards of the two companies, the shareholders of Bharti AXA shall receive 2 shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date of the approval.Bharti AXA General Insurance would cease to be a going concern, post the demerger.
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