The Hindu Business Line : ICICI Bank issue oversubscribed four times on FII bids

THE Rs 3,050-crore ICICI Bank public issue has received an over 400 per cent oversubscription with a majority of the bids coming in from foreign institutional investors (FIIs).

FIIs can acquire a maximum of 9.09 crore shares from the total issue of 11.96 crore shares without breaching the sectoral cap whereas they have put in over 17.95 crore bids. Total number of bids received was 49.83 crore, according to data available with stock exchanges. FIIs prior to the issue hold 45.25 per cent stake in ICICI Bank and have a maximum of 49 per cent. The total foreign holding in the bank already adds up to 71.4 per cent and can go up to a maximum of 74 per cent under the RBI norms.

Most of the bids for the issue have come in at Rs 280. The price band for the book building issue had been announced to be between Rs 255 and Rs 295.

According to NSE, individual applied for 42 lakh shares, while 2.99 crore shares had been initially allocated for the retail portion alone. Therefore all retail investors are expected to get the full allotment. Though the issue has no firm allotment clause, out of the total issue of 11.96 crore shares, 25 per cent had been kept for retail, 25 per cent as the non-institutional portion and 50 per cent as the qualified institutional portion.

Despite the part payment option offered by the bank, the retail/individual investor has shown minimal interest in the issue. ``The issue price is almost the same as the market price. Then why should one subscribe to the issue and lock one's funds,'' said an investor. The bank's share price in the market has been falling since the public issue opened on April 2, 2004 from Rs 300 to Rs 290-levels today. Over the last three months, the share had touched a high of over Rs 340 in early February and a low of below Rs 270 in early March. ICICI Bank today fell on both BSE and NSE today. On BSE, the scrip opened at Rs 291.50 and closed 1.10 per cent lower at Rs 288.30 after registering a turnover value of Rs 1,242 lakh. It ended 0.94 per cent lower on NSE at Rs 288.65.

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