Union Bank's stock climbs ~3.5% on completion of divestment of 21% stake in IFLIC

1 Apr 2022 , 01:05 PM

Union Bank’s counter added nearly 3.5% in today’s trade as the bank completed the divestment of its stake in IndiaFirst Life Insurance (IFLIC).

Earlier in February 2022, the bank informed investors of its consideration of the sale of a 21% stake in IndiaFirst Life Insurance Company for a consideration of Rs766.30 crore. The company decided to shed off 13,93,26,923 shares at Rs55 per share.

This divestment was in terms of the directives of IRDAI to bring down the Bank’s stake in IFLIC below 10%.

Post completion of this divestment, the shareholding of Bank in IFLIC stood at 9%.

This stake was sold to the Bank of Baroda, which was one of the existing stakeholders in IFLIC.

Union Bank’s stock was trading at Rs40.05, up by 3.35% against its previous close of Rs38.75 on BSE. It touched an intraday high and low of Rs40.20 and Rs38.50 respectively.