Shares of IndusInd Bank were gaining on Wednesday after the private lender dumped a 2.86% stake in an asset management firm.
What Happened: IndusInd Bank is reportedly gearing up to divest a 2.86% equity stake in Nippon Life India Asset Management (Nippon AMC), CNBC-TV18 reported, citing sources.
The divestment is likely to be executed through block deals, involving the potential sale of up to 1.79 crore shares at a floor price of ₹426.60 per share—a 5% discount to the current market price.
The estimated valuation of this block deal stands at ₹762 crore.
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Nippon AMC, in its recent financial disclosure, reported a robust 19.6% surge in net profit, reaching ₹235.2 crore for the quarter ending September, compared with a net profit stood of ₹197 crore in the same quarter of the previous fiscal year.
Nippon AMC’s revenue stream also jumped 19.1% to reach ₹368.1 crore in the quarter versus ₹309 crore a year ago.
As the divestment plans unfold, the focus remains on the positioning of Nippon AMC in the competitive asset management landscape. Retail assets, constituting 30% of the company’s assets, are notably higher than the industry average of 26%.
Price Action: IndusInd Bank’s share price was up 0.64% at 1,576.60 near the start of trade on Wednesday.
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