The Hindu Business Line : Retail investors pick up less in ICICI Bank issue

THE retail investors did not pick up their full quota of shares in the recently concluded Rs 3,500 crore public issue of ICICI Bank. While 25 per cent of the issue had been set apart for retail investors, the demand from small investors was only for about 17 per cent.

Initially, 2.72 crore shares were set apart for the retail investors , but only 1.56 crore shares were bid for, by them.

The public issue, however, as a whole was oversubscribed 2.42 times on the original offer without the greenshoe option.

Out of the total issue size of 12.50 crore shares, inclusive of the greenshoe option of 12.50 crore shares, FIIs have been allotted the substantial chunk of 36.4 per cent or 4.55 crore shares. Indian corporates have been allotted 22.24 per cent of the issue or 2.78 crore shares, high net worth individuals 23.4 per cent or 2.93 crore shares, and retail investors 12.24 per cent or 1.53 crore shares.

With the allotment of the shares under the just concluded public issue, the foreign holding in the bank has gone below 72 per cent, said the Reserve Bank of India, in a release issued on Thursday. FIIs, NRIs and persons of Indian origin (PIOs) can purchase shares of ICICI Bank in the secondary market under the portfolio investment scheme subject to the foreign holding cap of 74 per cent and FII cap of 49 per cent, said the apex bank.

The FII holding in the bank will be close to 45 per cent down from the previous figure of close to 47 per cent. The FII cap in private banks is set at 49 per cent.

The share price has been trading between Rs 285 and Rs 305 after the close of the issue on April 7. Analysts expect some upside in the share price, based on the bank's financial results, to be declared at the end of this month. The share price is to be maintained above the Rs 280-mark, the issue price for about a month's time by the price stabilisation agent engaged in the issue.

The bank's share price closed slightly higher on Thursday at Rs 298.55 on BSE up 0.73 per cent, and at Rs 299 on NSE up 0.52 per cent. Today the scrip traded volumes of 13.77 lakh on BSE and touched a high of Rs 303. The 52-week high for the stock is at Rs 351.95, and the 52-week low is at Rs 119.10.

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