Indian-based private sector lender ICICI Bank has unveiled it plans to dispose of up to two per cent stake in its life insurance unit, ICICI Prudential Life Insurance Company.

In a BSE filing, ICICI Bank said that the board of directors of the bank has approved the sale of up to 28,711,100 shares, representing up to 2% of the issued and the paid-up equity share capital of ICICI Prudential Life Insurance Company.

The stake sale can be carried out through several ways, including offer for sale through stock exchange mechanism (OFS).

The proposed share sale will help ICICI Bank to raise approximately INR11.77bn ($174m) based on ICICI Prudential Life shares price of INR410.25 ($6.06) as on 13 June 2018, reported Financial Express.

ICICI Prudential Life Insurance, established in 2000, operates as a joint venture (JV) between ICICI Bank and the US-based Prudential.

ICICI Bank owns 54.88% stake in the JV while Prudential holds 25.83% shareholding as on 31 March 2018, according to data on the BSE. The remaining equity in the company is owned by public and institutional investors.

In 2016, the life insurer launched its initial public offer (IPO). It was the first insurance firm to become listed company on Bombay Stock Exchange and National Stock Exchange.