Indian bank's stock dips ~3% post acquisition of stake in IBBIC

24 Feb 2022 , 11:33 AM

In its regulatory filing on Thursday, Indian Bank Ltd. informed its investors and the exchanges that the bank has acquired a 5.55% stake in IBBIC Pvt. Ltd. for a cash consideration of Rs1.25 crore.

The company will subscribe 12,50,000 shares under first tranche of Rights Issue of 49,50,000 shares offered to existing shareholders on proportionate basis through Rights Issue. Post this acquisition, the company’s total holding in IBBIC would be 13,00,000 shares.

IBBIC Private Limited is incorporated on 25-05-2021 as a financial technology company with an objective of providing a platform for exploring, building and implementing distributed Ledger Technology (DLT) solutions for the Indian Financial Services sector. A distribution ledger or shared ledger technology is a consensus of replicated, shared and synchronized digital data geographically spread across multiple sites, countries or institutions.

Indian Bank’s stock slipped in sync with the broader index at Rs144.90 against its previous closing price of Rs149.55, down by Rs4.65 or 3.11%. It touched day’s high and low of Rs145.80 and Rs140.80 respectively.