ICICI Bank may raise half of $5-b capital here
ICICI Bank is likely to raise at least half its proposed $5-billion fresh capital issuance from the local market
By TNN |
MUMBAI: ICICI Bank is likely to raise at least half its proposed $5-billion fresh capital issuance from the local market. This would be one of the largest-ever `follow-on’ issuance which would hit the local market. In 2004, ONGC had raised Rs 10,695 crore, when the government offloaded 10 per cent of its stake.
According to sources, out of the Rs 20,000 crore which the bank is looking at raising along with its green-shoe option, the country’s largest private sector bank is likely to raise anywhere between Rs 12,000-10,000 crore from the local market. The bank will raise the remaining through the American Depository Shares (ADS) market. The bank will do a simultaneous issue in the local and the overseas market.
A final decision on how much money will be raised from the local market will be decided in the next few days. Even as foreign investors can hold up to a 74 per cent stake, foreign institutional investors can hold only up to a 49 per cent stake in the bank. Indian investors would need to have at least a 26 per cent stake.
Foreign investors currently hold 71.63 per cent stake in the bank. Of this, ADS holders hold 25.29 per cent stake. ICICI Bank’s issue will hit the market after the DLF IPO. DLF is expected to raise Rs 8,750-9,625 crore through the issue. In the ICICI Bank local issuance, around 35 per cent is being reserved for retail subscribers while around 15 per cent for non-institutional bidders with the remaining set aside for qualified institutional buyers.
According to sources, out of the Rs 20,000 crore which the bank is looking at raising along with its green-shoe option, the country’s largest private sector bank is likely to raise anywhere between Rs 12,000-10,000 crore from the local market. The bank will raise the remaining through the American Depository Shares (ADS) market. The bank will do a simultaneous issue in the local and the overseas market.
A final decision on how much money will be raised from the local market will be decided in the next few days. Even as foreign investors can hold up to a 74 per cent stake, foreign institutional investors can hold only up to a 49 per cent stake in the bank. Indian investors would need to have at least a 26 per cent stake.
Foreign investors currently hold 71.63 per cent stake in the bank. Of this, ADS holders hold 25.29 per cent stake. ICICI Bank’s issue will hit the market after the DLF IPO. DLF is expected to raise Rs 8,750-9,625 crore through the issue. In the ICICI Bank local issuance, around 35 per cent is being reserved for retail subscribers while around 15 per cent for non-institutional bidders with the remaining set aside for qualified institutional buyers.
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