Financial Daily from THE HINDU group of publications
Sunday, Apr 04, 2004
Financial Daily from THE HINDU group of publications Sunday, Apr 04, 2004 |
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Private Banks Money & Banking - Public Offer FIIs set to emerge largest bidders in ICICI Bank issue
Virendra Verma
Mumbai , April 3 FOREIGN Institutional Investors (FIIs) are all set to once again emerge as the largest subscribers in the over Rs 3,000-crore public issue of ICICI Bank as they have bid for almost 60 per cent of the total bids received on the first day of the issue. The public issue has been oversubscribed 1.15 times on the opening day. FIIs put in bids for over 8.20 crore shares in the issue which has over 11.96 crore shares in total. They were also the largest partakers in the recently concluded six PSU public offerings. FIIs already hold 27.83 crore shares which accounts for 45 per cent stake in the bank. They can take hold of another 9.09 crore shares without breaching the 49 per cent limit of FII holding within the 74 per cent FDI investment cap in private sector banks. However, large portion of the FIIs are likely to be disappointed in case the retail and non-institutional portion is subscribed. According to the ICICI Bank offer document, Qualified Institutional Buyers (QIBs) shall be allocated up to 50 per cent of the issue size (that is maximum of 5.98 crore shares). The second largest bidder after FIIs are insurance companies, primarily Life Insurance Corporation. Insurance companies have bid for 2.63 crore shares (19 per cent of the bids received). The third largest bidders are mutual funds with bids for 2.15 crore shares (15.6 per cent of the bids received). Financial institutions have put in 74.99 lakh bids and retail investors till now have made bids for just 2.47 lakh shares. Brokers and analysts said FIIs are likely to receive less shares than they have applied for as around 35 per cent of the bids on the first day have come from other QIBs like insurance companies.
More Stories on : Private Banks | Public Offer | Foreign Institutional Investors
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