MUMBAI - ICICI Bank Limited announced on Monday, May 17, 2024, that it has entered into a memorandum of understanding to invest in a new subsidiary of The Clearing Corporation of India Limited (CCIL). The investment will see ICICI Bank acquire a 6.125% stake in the yet-to-be-incorporated entity, which will operate in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT-IFSC) in India.
The target entity is planned to set up and manage a Foreign Currency Settlement System (FCSS) in GIFT-IFSC, functioning as a clearing house and system operator. It also aims to provide services similar to those offered by CCIL in India and may expand its activities within GIFT-IFSC as permitted by law.
ICICI Bank will invest cash consideration of ₹10 per share to acquire 6,125,000 equity shares of the new entity. This investment represents a financial venture by the bank into a financial services entity that is yet to commence operations, with no turnover history or previous financial performance to report.
The completion of the acquisition is expected to take place within 365 days from the date of the memorandum of understanding, and no regulatory approvals are required for the investment. The bank emphasized that the transaction does not constitute a related party transaction and ICICI Bank does not have promoters.
This strategic move by ICICI Bank is part of a collaboration with seven other shareholders to support the establishment of the subsidiary within the GIFT-IFSC, a move that aligns with India’s broader efforts to develop its financial services infrastructure.
The information regarding ICICI Bank's investment is based on the company's recent press release statement.
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