The Hindu Business Line : Follow-on offer not to impact ICICI Bank weightage

Chennai June 24 The follow-on public offer (FPO) of ICICI Bank will help close down gap between the bank and number two stock Infosys Technology in the BSE Sensex, according to its weightage. However, it may not make any drastic change in the S&P CNX Nifty.

ICICI Bank came out with a follow-on offer for 9.88 crore shares.

ICICI Bank currently carries a weightage of 9.23 per cent in the BSE Sensex and third in the list behind Reliance Industries (13.05 per cent) and Infosys Technologies (10.26 per cent).

The BSE Sensex is being calculated by free-float methodology. This is computed by multiplying the market capitalisation of a company by the free-float factor to determine the free-float market capitalisation. Free-float factor for ICICI Bank is 1, according to the BSE site.

Following the FPO, ICICI Bank's share base would swell to 99.8 crore shares from 89.92 crore shares and market cap to Rs 95,509 crore from Rs 85,411 crore based on Friday's close. This would change the ICICI Bank weightage to 10.144 per cent, as compared to Infosys Technologies' 10.148 per cent; Infosys' m-cap stands at Rs 94,678 crore in Sensex and currently it carries a weightage of 10.25 per cent.

Similarly in Nifty, its weightage would move up to 4.36 per cent from 3.94 per cent and will remain at seventh place.

S&P CNX Nifty is computed using market capitalisation weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period.

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