ICICI Bank acquires stake in Midland Microfin

ICICI Bank holds 9.9 per cent of the equity share capital of Midland

The stock of ICICI Bank was trading lower by nearly 1.5 per cent on Friday; however, it’s off the day’s low. Having said that, the stock has dropped nearly 4.5 per cent on a WTD basis. While, on a YTD basis, it is up by 29.8 per cent thereby, outperforming Bank Nifty as it is up by 18.7 per cent on a YTD basis.   

ICICI Bank has entered into an agreement dated September 30, 2021, in relation to an investment in the equity shares of Midland Microfin Limited (Midland). The equity shares were allotted to ICICI Bank by Midland Microfin Ltd on September 30, 2021.  

Midland is a non-banking financial company - micro finance institution (NBFC-MFI). The total revenue of the company in FY2021 stood at Rs 192.34 crore while profit after tax reported in FY2021 was Rs 14.63 crore.   

ICICI Bank holds 9.9 per cent of the equity share capital of Midland and 7.3 per cent of the total share capital of Midland. An important point to note here is that its shares were acquired with a cash consideration of Rs 52.42 crore.