ICICI Prudential shares slide on Prudential Bharti Life bid reports
Business
ICICI Prudential Life Insurance shares slid over 7% on Monday after reports said U.K.-based Prudential plc will acquire a controlling stake in Bharti Life Insurance for around ₹3,500 crore.
This move has investors worried that Prudential might need to offload a big chunk of its 22% stake in ICICI Prudential (worth nearly ₹17,000 crore), sparking uncertainty.
Prudential may sell ICICI Prudential stake
Indian rules don't let one company own major stakes in more than one insurer.
With the Bharti deal, Prudential may have to cut its ICICI holding below 10%, possibly leading to a large share sale and flooding the market.
Analysts say this isn't about company performance (ICICI Prudential is still strong in India's life insurance scene) but more about who will own what next.