The Hindu Business Line : ICICI Bank gets shareholders' nod for public issue

Up to 155 million shares can be issued to raise Rs 3,500 crore from the market. The shareholders gave approval to the bank to raise up to 10 per cent of the authorised capital of the bank, said an ICICI Bank spokesperson.

The issue will be a book-built one and the price band will be announced later. There is a proposal to reserve 10 per cent of the issue to the existing retail shareholders, which has to be approved by SEBI. Retail as defined by the bank would mean investors who own less than 1,000 shares. The shareholders also approved the reappointment of Ms Lalita D. Gupte as Joint Managing Director of the Bank until October 31, 2006. The reappointment, however, is subject to Reserve Bank of India's approval. Ms Gupte who continues to be a board member got an extension of her contract, which was due to expire in June 2004.

Said an analyst, "The bank is capitalising on the stock market boom and raising funds anticipating credit requirements and also to diversify its shareholding. If the funds are well disbursed there might be significant FII interest in the stock post the issue." Post-equity dilution, there will be more room for FII investment.

The foreign holding in the bank is at 71 per cent, which will stand reduced to 65 per cent post issue. The cap on foreign holding in private banks is at 74 per cent.

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ICICI Bank gets shareholders' nod for public issue