Goldman Sachs May Pick up Stake in Icici Financial Services

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MUMBAI, June 15 Asia Pulse - Global investment bank Goldman Sachs could pick up a stake in domestic ICICI Bank's (BSE:532174) subsidiary ICICI Financial Services, an insurance and asset management company.

"Goldman Sachs could consider investing in ICICI Financial Services," India Country Head of the investment bank Brooks Entwistle told reporters on the sidelines of an ICICI press conference. He, however, declined to disclose the stake Goldman wanted to pick up.

When asked, ICICI Financial Services Head Kalpana Morparia declined to comment on the investors who have evinced interest in the newly formed subsidiary.

The financial services subsidiary holds 74 per cent stake in ICICI Prudential Ltd, 74 per cent in ICICI Lombard and 51 per cent of the asset management company.

ICICI Financial Services will offload a part of its holding to raise capital, primarily to fuel the growth of its insurance venture.

ICICI Bank had recently informed BSE that following discussions with potential investors for investment in the proposed new subsidiary, the bank has received definitive offers from many parties for subscription to equity shares of the proposed new subsidiary.

The subscription amount is about us $26.50 billion towards fresh issue of shares by the proposed new subsidiary, and the investors would thereby acquire a collective stake of 5.9 per cent in the proposed new subsidiary, valuing it at us $446 billion on a post-issue basis.

The arrangement is subject to receipt of regulatory and other approvals including that of the RBI, IRDA and the FIPB.

(PTI)