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With the stock of Indian bank ICICI Bank (NYSE:IBN) up 10% on the news of the potential IPO of its brokerage arm, I am going to take this opportunity to sell 125 of the 375 shares (1/3rd) owned; cash is running low so in a market like this 10% gains are not to be ignored. This takes my stake down to 1.25% of fund.

While this is good news from the perspective of long term value it doesn't change business much today. Further, it's a rumor not a fact - but I do like this powerhouse of banking either way. I believe I read in the recent past that they are opening their first branches in North America relatively soon.

  • India's most-valuable lender, ICICI Bank (IBN), may be planning an initial public offer in its investment banking and broking unit, traders and analysts said on Monday, sending its shares soaring more than 6 percent.
  • "There is a belief in some circles that if the subsidiaries are valued separately, the sum-of-the-parts business that is the listed entity ICICI Bank would have a far higher valuation than what the market currently reflects," said Arun Kejriwal, director at KRIS.
  • ICICI Securities offers services in corporate finance, fixed income and equities and operates out of Mumbai with offices in New Delhi, Chennai, Kolkata, New York, London and Singapore, according to its Web site.

Disclosure: Long ICICI Bank in fund; no personal position

Source: ICICI Bank Up 10% on News of IPO of Brokerage Arm: What's Next?