NIIT Expands Its Portfolio with IFBI Acquisition
In a strategic move to enhance its educational offerings, NIIT Limited has announced its plan to acquire 19 lakh shares of IFBI from ICICI Bank Ltd. This acquisition marks a significant step for NIIT, as it aims to strengthen its footprint in the finance and banking education sector. The deal will not only bolster NIIT’s capabilities but also transform IFBI into a wholly-owned subsidiary.
Details of the Acquisition
During a recent board meeting, NIIT approved the acquisition of 1,900,000 equity shares of NIIT Institute of Finance Banking and Insurance Training Limited (IFBI), which represents 18.79% of the total issued and paid-up share capital from ICICI Bank. Additionally, NIIT will purchase 50,000 shares from individual shareholders, constituting 0.49% of the total capital.
- Total Shares Acquired: 1,950,000
- Percentage of Capital: 19.28%
- Estimated Sale Revenue: Rs 4.7 to 6.58 crore
Timeline for Completion
The transaction is set to be finalized by September 30, 2025, with the entire stake sale approved by ICICI Bank’s board. This strategic divestment marks a pivotal moment for both organizations, allowing ICICI Bank to focus on its core banking operations while NIIT expands its educational services.
ICICI Bank’s Financial Performance
ICICI Bank is witnessing robust growth, with a reported 11% increase in net interest income, reaching Rs 21,193 crore. The bank’s net interest margin improved to 4.41% during the first quarter of the year, showing a slight increase from 4.25% in the previous quarter and maintaining a steady 4.40% year-on-year.
As a testament to its strong financial performance, ICICI Bank has recommended a dividend of Rs 11 per share, reflecting the positive impact of strong loan growth and a rise in net interest income.
Conclusion
This acquisition not only positions NIIT to become a leader in finance and banking education but also highlights the strategic moves within the financial sector. As both organizations evolve, stakeholders can anticipate exciting developments in education and banking services.
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