ICICI Lombard share price hits 52-week high after in-principle nod to acquire Bharti AXA General Insurance

ICICI Lombard General Insurance Company share price was up over 2 percent intraday on December 1 after the company received 'in-principle approval' to acquire Bharti AXA General Insurance.

The Insurance Regulatory and Development Authority of India (IRDAI) on November 27 gave an in-principle approval to the acquisition of General Insurance business of Bharti AXA General Insurance Company Limited by ICICI Lombard General Insurance Company Limited, the company said in an exchange filing.

Earlier, BSE Limited, National Stock Exchange of India Limited and the Competition Commission of India (CCI) had approved the proposed acquisition by ICICI.

The stock was trading at Rs 1,492.80, up Rs 37.05, or 2.55 percent at 10:44 hours. It has touched a 52-week high of Rs 1,500. It has touched an intraday high of Rs 1,500 and an intraday low of Rs 1,459.50. "Post submission of all the required documents/information, the authority hereby grants 'In-principle' approval under section 35 to 37 read with IRDA Regulations, 2017 for demerger of general insurance business undertaken by Bharti AXA to ICICI Lombard."

Currently, Bharti Enterprises owns 51 percent in Bharti AXA General. The firm has joint venture with French firm AXA which owns 49 percent stake. With the deal with ICICI Lombard in place, Bharti and AXA will be public shareholders in the combined entity.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities is of the view that further uptrend may continue which could lift the stock to Rs 1620. On the flip side, dismissal of Rs 1400 could possibly trigger quick short-term correction up to Rs 1360.

Source: Money Control