Why IndusInd Bank Share Price Is Up Today

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.

See Also: SEBI Launches Major Raids Across 100 Locations In Gujarat Targeting Stock Market Fraud

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.

Read Next: Sovereign Gold Bonds Series III Now Open For Subscription: Here’s How To Buy SGBs Online

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Posted In: EquitiesNewsAsset SalesMarketsMoversTrading IdeasIndusInd BankNippon Life India AMC

Loading...