Pay in parts for ICICI issue | business | Hindustan Times
Today in New Delhi, India
Nov 25, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Pay in parts for ICICI issue

India’s largest public offering of shares by ICICI Bank to raise Rs 10,062.5 crore in the domestic market will open for subscription on June 19, reports MC Vaijayanthi.

business Updated: Jun 15, 2007 00:23 IST

India’s largest public offering of shares by ICICI Bank to raise Rs 10,062.5 crore in the domestic market will open for subscription on June 19 and close on June 22. Apart from reserving up to 5 per cent of the issue for existing retail investors, and also promising them a discount to the issue price, the bank has added the option of partial payment on application.

ICICI Bank will sell American Depository Receipts in the US simultaneous to the domestic issue for a similar value, taking the total funds to be raised to Rs 20,125 crore.

The indicative price band for the domestic offering will be set on Monday.

Retail investors need to pay Rs 250 on application, Rs 250 on allotment and the balance on call within six months of the issue. Non-institutional bidders have the option to pay Rs 250 on application and the balance on allotment. Qualified institutional bidders, which have to pay a 10 per cent margin on application, have the option to pay Rs 250 less the margin amount on confirmation of allocation and the balance on allotment. The partially paid shares would be traded on the exchanges.

The issue size is Rs 8,750 crore. The greenshoe option would constitute an additional Rs 1,312.5 crore of the issue. The greenshoe portion would operate as s price stabilisation mechanism post-listing, with DSP Merrill Lynch as the stabilising agent.

“Non-resident bidders (including foreign institutional investors) will require prior approval of the Reserve Bank of India to subscribe to the partly paid shares, “ said Kalpana Morparia, chief strategy and communications officer, ICICI Group.

ICICI Bank anticipates sustained economic growth and wants to be ready to meet the associated growth in credit demand. “Growth is tending to double digits,” said K V Kamath, managing director and CEO of ICICI Bank. After having taken a leading position in the retail banking segment, ICICI Bank is now focusing on expansion in rural business.