The Hindu Business Line : ICICI Bank issue: Sops to retail investors

Mumbai June 14 ICICI Bank plans to raise Rs 10,062.5 crore including green shoe option through a domestic follow-on offer. The bank hopes to raise the same amount through an issue of American Depository Shares on the New York Stock Exchange.

The issue will open on June 19 and close on June 22. According to senior officials in the bank, the price band for the issue will be decided on June 17.

The bank has also tried to attract retail investors reserving up to 5 per cent of the issue for its existing retail shareholders.

Secondly, the bank will offer part payment option to its retail bidders. According to this, the retail bidders will have the option to pay Rs 250 per share on application, Rs 250 on allotment and the balance amount payable on a call, which is to be issued by the bank within a period of six months from the date of allotment. "We are trying to offer as much flexibility to retail investors as possible," said Ms Kalpana Morparia Chief Strategy and Communications Officer, ICICI Group.

"The domestic issue size is around Rs 8,750 crore. In addition, there is a green shoe option under which the bank may allocate additional equity shares up to Rs 1,312.5 crore and operate a price stabilisation mechanism post listing, with DSP Merrill Lynch as the stabilising agent," said a press release by the bank.

Non-institutional bidders will have the option to pay Rs 250 on application and the balance on allotment. Qualified institutional bidders, who have to pay a 10 per cent margin on application, have the option to pay Rs 250 less than the margin amount on confirmation of allocation and the balance on allotment.

According to a banking analyst, "The issue will have a positive impact on the shares of ICICI Bank. The market will closely watch where the money is getting deployed. The market expects that the money will be used to improve the bank's margin."

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