The Hindu Business Line : BSE scores over NSE in ICICI Bank issue

THE ICICI Bank follow-on public issue has struck a somewhat different note on the bidding front, given the obvious supremacy of Bombay Stock Exchange in this matter, a trend that seems to have overshadowed the National Stock Exchange.

As the latest figures indicate, the bid quantity on the BSE was 10,60,12,240 shares (at around 4:50 PM on Friday), while the same for NSE was 1,98,09,900 shares. The former corresponds to 107.07 per cent, while the latter indicates a 0.2 times subscription.

The Rs 5,000 crore-plus ICICI Bank offer - the total size is 9,90,09,900 shares - is open till December 6 and is being made at a price range of Rs 505-545.

The stock closed at Rs 544.20 on Friday on the NSE, after reaching the day's high at Rs 556.

The bidding numbers, market circles feel, are quite distinctive this time as they point towards a preference for BSE. They also point towards a relatively modest response shown by investors to the issue, albeit sentiments may well turn entirely different later.

On a cumulative basis, the number of bids received stood at 7,84,30,190 shares, or 79.21 per cent, according to data released by the two exchanges. Incidentally, 3,53,050 bids were placed at the cut-off rate.

The ICICI Bank offer, investors maintain, may be viewed against some of the other issues that have recently hit the market, which have underlined a dominance of NSE. Take, for instance, Kernex Microsystems, which is seeking to list its stock on both bourses. Data logged for the issue, which of course is not comparable in any way with that of the bank, show that NSE has received a total of 1,56,27,875 bids - compared to 1,12,04,250 at the BSE end. The total size here is 44,00,475 shares.

The latest trend was not found the last time ICICI Bank had tapped the market, it is being claimed. In April 2004, the issue price was Rs 280, the price range being set at Rs 255-295.

When contacted, Mr Mehul Savla, V-P at ICICI Securities, concurred that the situation is in favour of BSE, at least for the time being. "This may reverse at the time the book is closed. Wait till December 6 and the picture may be different," Mr Savla, who was present at a recent road-show for the issue, told Business Line.

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