Dubai firm buys 2.87 pc stake in ICICI Bank

DUBAI: Dubai International Capital (DIC), the investment arm of Dubai Holding, has bought 2.87 per cent stake in ICICI, India's second largest bank.

Dubai International Capital's investment in the Indian bank follows its recent purchase of 3.12 per cent stake in the European Aeronautic Defence and Space Company EADS, the parent company of aircraft manufacturer Airbus.

ICICI Bank had assets of USD79 billion at the end of March 31. It raised USD4.9 billion in India's biggest share sale open to domestic and foreign investors in June.

"The investment allows DIC to become one of the leading shareholders in the company," DIC said in a statement.  However, it did not disclose the value of its investment.

The Dubai firm may have paid USD717 million for the stake acquired from the American Depository Receipts (ADR) issue open to foreign investors.

However, at today's closing share price DIC's stake would be worth USD741.5 million.

"The strategic investment in ICICI supports the global diversification and growth mandate for DIC and its parent company, Dubai Holding," DIC chief executive officer Sameer Al Ansari said.

The Singapore government investors held about 9.7 per cent stake in ICICI before the latest share offering and had the approval to raise their stakes substantially.

DIC aims to have assets worth USD25 billion in the next two years.