ICICI Bank’s secondary public issue has seen huge investor interest. The bank mopped up a staggering Rs 72,450 crore — nine times the amount it can retain.
MUMBAI: ICICI Bank’s secondary public issue has seen huge investor interest. The bank mopped up a staggering Rs 72,450 crore — nine times the amount it can retain.
The bank’s foreign offering across the US and Japan has been oversubscribed 14 times, while the domestic issue has been oversubscribed 7 times.
A disappointing note to this has been the lukewarm response to the issue from domestic investors. The retail issue was under-subscribed at 0.65 times. The cut-off price has been fixed at Rs 525 for the domestic issue.
Meanwhile, the bank’s American Depositary Share (ADS) offering of Rs 2,000 crore ($433 million) has been priced at $26.75 per ADS, translating into a price of approximately Rs 618 per equity share and representing a premium of approximately 18% to the domestic issue price.
According to information available on the NSE website, while only 9.9 crore shares were on offer, applications were received for 67 crore shares. Shares reserved for qualified institution buyers (QIB) were oversubscribed 13 times. Those for non-institutional investors were oversubscribed 1.7 times.
Each ADS is equivalent to two equity shares of ICICI Bank.
The offering is being made under ICICI Bank’s registration statement filed with the SEC. Rs 500 crore or $108 million (25% of the ADS offering) has been allocated for Japanese investors, though there is no listing done in Japan. The ADS offering also has a green shoe option of Rs 300 crore ($65 million).
“There has been an overwhelming response to the both the domestic and the ADS issue. The interest, especially from retail and small investors has been tremendous,” said Raj Kataria, senior vice-president, DSP Merrill Lynch.
DSP Merrill Lynch and JM Morgan Stanley were the book running lead managers for the public issue in India. Merrill Lynch International, Morgan Stanley and Nomura Securities were the joint global coordinators for the ADS offering.
The issuance and delivery of the equity shares and the ADS is expected to occur on December 16, 2005.
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