The Hindu Business Line : FIPB likely to advise I-Sec to exercise ‘automatic route’

New Delhi, May 9 The Foreign Investment Promotion Board (FIPB) has taken the view that ICICI Securities (I-Sec) — where parent firm ICICI Bank is seeking to unlock value by selling shares to public and institutional investors — can exercise the ‘automatic route’ for foreign equity infusion.

“The company is a NBFC, where FDI up to 100 per cent is permitted under automatic route, and therefore it does not need an FIPB approval. It is eligible under the automatic route,” sources said.

IPO & private placement

Domestic investment banking firm ICICI Securities had sought government’s approval for foreign equity infusion, and the proposal was taken up in FIPB meeting today. Earlier this year, the board of ICICI Securities had approved the initial public offering and private placement of shares to one or more institutional investors. Following the board meeting in January, ICICI Bank’s Joint Managing Director and CFO, Ms Chanda Kochhar, had said that the shares of ICICI Securities would be listed on the bourses in about six months.

The board had decided to offload 15 per cent of its shares to retail and institutional investors.

This week, the ICICI Bank CEO and MD, Mr K.V. Kamath, had said that the I-Sec IPO would come out in due course. “The IPO will come in due course. We are not in a hurry,” Mr Kamath said, adding that the bank has not decided on the size of the IPO and when the market conditions are favourable, the bank will consider the issue.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
FIPB likely to advise I-Sec to exercise ‘automatic route’

Max New York rules out sectoral funds as investment option for now

Tyre stocks fall on firm rubber prices

Reliance, RPL down sharply on fears of Govt control

Higher crude prices pull down oil marketing cos

For markets, it was a week of battering

Weekly Market round-up