ICICI Bank to sell $4.9 bn shares next week | business | Hindustan Times
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ICICI Bank to sell $4.9 bn shares next week

ICICI Bank will launch a share sale to raise up to $4.9 billion fund robust demand for loans in the rapidly expanding economy.

business Updated: Jun 14, 2007 16:01 IST

India's largest private sector lender, ICICI Bank, said on Thursday it would launch a share sale next week to raise up to $4.9 billion to fund robust demand for loans in the rapidly expanding economy.

It will offer shares worth 87.5 billion rupees ($2.1 billion) each in India and in the United States, with a greenshoe option for 15 percent, taking the total offering to 201.25 billion rupees.

The follow-on sale will be the biggest by an Indian company, surpassing the $2.3 billion raised by state-run Oil and Natural Gas Corp. in 2004.

"We will fix the indicated price band on Monday," Chief Financial Officer Vishakha Mulye said at a news conference, referring to the domestic portion of the offering which will be open for subscription June 19-22.

ICICI, with a market value of about $20 billion, will simultaneously sell American Depositary Receipts in the United States.

The bank will use the funds to lend to the corporate and the retail sectors, Chief Executive KV Kamath said.

Demand for loans in India has been rising at more than 26 per cent annually as the economy, Asia's third-largest, grew 9.4 per cent in the fiscal year that ended in March.

Smaller rivals HDFC Bank and UTI Bank have announced plans to raise about $1 billion and about $600 million respectively in share sales.

DSP Merrill Lynch, Goldman Sachs, Enam Financial Consultants and JM Morgan Stanley are the Indian issue managers.