ICICI Bank has announced its decision to divest its 19% stake in ICICI Merchant Services Private Limited (IMSPL) through a share purchase agreement with First Data Holding I (Netherlands) B.V., First Data (India) Private Limited, and Fiserv Merchant Solutions Private Limited (formerly known as IMSPL).
In a regulatory filing on Saturday, ICICI Bank confirmed that it has executed a share purchase agreement to facilitate the sale of its stake in IMSPL. The completion of necessary procedures and the transfer of shares will be communicated in due course.
The transaction is currently pending regulatory and statutory approvals and is expected to be completed by June 30, 2025.
This decision aligns with the bank’s strategy to streamline its investments and focus on core banking operations. In December 2024, ICICI Bank’s board had already approved the proposal to sell its 19% stake in IMSPL. Upon completion, IMSPL will no longer be classified as an associate entity of ICICI Bank.
The sale of ICICI Bank’s stake in IMSPL is expected to allow the bank to optimise its investment portfolio while enabling First Data Holding and Fiserv to strengthen their position in India’s growing merchant services sector.
Fiserv, a global financial technology provider, has been expanding its footprint in India, and this move could reinforce its presence in the digital payments and merchant acquiring business.
ICICI Bank’s share price stood at ₹1,337.90, reflecting a 1.48% increase (+₹19.45) at 9:45 AM on the NSE, from the previous close of ₹1,318.45. The stock opened at ₹1,322.15, touched a high of ₹1,337.95, and recorded a low of ₹1,322.15 during early trading.
ICICI Bank’s decision to divest its stake in ICICI Merchant Services marks a significant shift in its investment approach. With the regulatory approvals in progress, the transaction is anticipated to conclude by mid-2025, further shaping the landscape of India’s financial services sector. Investors and stakeholders will be keenly observing how this exit influences ICICI Bank’s broader growth strategy
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Apr 2, 2025, 9:48 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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