Balrampur Chini Mills gain after ICICI Bank invests in NBFC arm

India’s second-largest bank in terms of assets and market capitalisation, ICICI Bank Limited informed that it has entered into an agreement to invest Rs 51.09 crore in Balrampur Chini Mills’ associate company-Auxilo Finserve Private Limited. Post this investment, Balrampur Chini Mills was today locked in 10 per cent upper circuit at Rs 90.

In a BSE filing released on Thursday after market hours, ICICI Bank stated that they signed the agreement on March 25 with Auxilo Finserve, which was earlier known as Stellenyak General Finance Limited. It further added that ICICI Bank Ltd has invested Rs 51.09 crore by way of subscribing 3.40 crore equity shares of Rs 10 face value per share, constituting 9.90 per cent of its equity share capital at a premium of Rs 5 per share.

Founded in 2017, Auxilo Finserve Pvt Ltd is a pro-education non-banking financial company (NBFC) registered with Reserve Bank of India (RBI).

At the time of market closing on Friday, the stock of ICICI Bank was trading at Rs 340.10, up by 2.44 per cent against its previous close of Rs 332.00.

While, the stock of Balrampur Chini Mills Ltd was trading at Rs 90.00, up by 9.96 per cent against its previous close of Rs 81.85 on BSE.