ICICI Bank fixes issue price at Rs 940; to raise Rs 9,287cr | business | Hindustan Times
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ICICI Bank fixes issue price at Rs 940; to raise Rs 9,287cr

business Updated: Jun 23, 2007 22:53 IST

ICICI Bank on Saturday fixed Rs 940 as the issue price for its follow-on public offer (FPO), through which it would raise about Rs 9,287 crore.

The issue price represents a premium of Rs 3.6 per cent to the average closing price since the announcement of the issue on April 28, the company said in a statement.

Earlier, the FPO of about 9.88 crore shares was subscribed 11.5 times with bids for over 113 crore equity shares, mainly due to huge demand from foreign institutional investors, according to data available with stock exchanges.

The demand was for shares worth at least Rs 1,00,500 crore, based on the lower end of the price band of Rs 850-950.

The issue, which closed on Friday, was fully subscribed soon after the bidding process had begun on June 19.

The issue received overwhelming demand from Qualified Institutional Buyers, with the portion reserved for them getting subscribed over 21 times. FIIs bid for 75.05 crore shares and domestic mutual funds for 20.85 crore shares.

Besides, the retail portion got fully subscribed on the last day with individual investors bidding for more than 3.40 crore shares, the data shows. The portion reserved for the non-institutional investors got subscribed by over six times.

The FPO is a part of the company's plan to raise about five billion dollars from the issue of equity shares in the domestic and international markets, which is the largest ever in value terms by any Indian company.

The company has also fixed the issue price for its American Depository Share offer at 49.25 dollars per ADS. This translates into a price of around Rs 1,002.5 per equity share. The price represents a premium of 6.6 per cent over the domestic issue price, the company said.

Each ADS represents two equity shares of the bank.