ICICI seeks approval for biggest share sale

ICICI seeks approval for biggest share sale
Comment E-mail Print Share
First Published: Thu, Jun 14 2007. 12 48 AM IST
Updated: Thu, Jun 14 2007. 12 48 AM IST
ICICI Bank Ltd, India’s most valuable financial services company, has sought regulatory approval for the nation’s biggest share sale, seeking to raise Rs17,500 crore at home and overseas.
The bank, based in Mumbai, said it has filed documents with the Securities and Exchange Board of India (Sebi) to raise Rs8,750 crore. It also plans to sell an equal amount of shares overseas, people familiar with the plan had said last week. The total sale may be raised to Rs20,100 crore if there’s demand.
ICICI Bank, HDFC Bank, UTI Bank and State Bank of India will sell shares this year to meet accelerating credit demand in an economy that grew an average 8.6% in the past four years.
Shares of India’s biggest lender to consumers have more than tripled in value during the past three years.
“Banks are operating in a very nice environment with 30% credit growth. It’s a dream buy,” said Prateek Agrawal, who manages $203 million (Rs832.30 crore) of equities at ABN Amro Asset Management in Mumbai. “I see no issue with regard to demand from either local or overseas investors,” he added.
ICICI Bank’s offer coincides with the biggest initial public offering by an Indian company, a $2.4 billion issue by real estate developer DLF Ltd. The Delhi-based firm had received orders for 1.46 times the shares on offer as of 2pm on Wednesday, the third day of its IPO, according to the National Stock Exchange’s website.
The bank estimates $500 billion of investment will be needed for infrastructure and manufacturing projects in India during the next three years, its chief executive officer K.V. Kamath had said in an interview on 28 April. ICICI Bank’s shares fell 0.67% to Rs912.90 on the Bombay Stock Exchange on Wednesday.
Merrill Lynch & Co. and Goldman Sachs Group Inc. are helping ICICI Bank sell the new shares. Bloomberg
Comment E-mail Print Share
First Published: Thu, Jun 14 2007. 12 48 AM IST
More Topics: Home |