ICICI Bank’s issue likely this month

ICICI Bank’s issue likely this month
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First Published: Sun, Jun 10 2007. 04 31 PM IST
Updated: Sun, Jun 10 2007. 04 31 PM IST
PTI
Mumbai: India’s largest private sector lender, ICICI Bank’s follow-on public issue, speculated to be in the range of Rs10,000-11,000 crore, is likely to open in the third week of this month.
The bank is expected to receive market regulator, Sebi’s approval for its issue by Tuesday or Wednesday (12 or 13 June) this week, a source close to the development said.
The date of launch of the issue will officially be made known only after receipt of Sebi approval but the market buzz is that the bank has decided on the third week of this month for its issue-opening.
When contacted, an ICICI spokesperson declined to comment on the issue. “All I can say is that we hope to receive Sebi approval soon. Beyond that, I can’t say anything,” he said.
The price band of the follow on public offer is also the subject of market speculation which puts the figure between Rs900-960 per share.
Again, the ICICI spokesperson declined to comment on the issue, saying “all this is mere speculation.”
However, the third week of this month seems a good bet as there would be a gap of at least a week between ICICI Bank’s and another mega IPO, that of DLF’s, which is scheduled to open tomorrow.
While the market is divided on the likely response that the DLF offer would get, most analysts are agreed that ICICI Bank’s issue would get an enthusiastic response.
Apart from the domestic issue, ICICI Bank is also looking at raising resources from abroad through American Depository Shares.
The private sector lender is seeking to raise resources primarily to fuel its growth.
The money raised will be used to meet the increasing credit needs of the bank, including meeting Basel II norms.
The issue should take care of the bank’s requirement of capital for at least the next three-four year period, market sources said.
Several banks, both in the public and private sector space, have also announced their intention to sell shares. These include India’s premier bank, State Bank of India and two major private sector banks, HDFC Bank and UTI Bank.
Apart from the above, Central Bank of India also plans to tap the capital market with its IPO soon.
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First Published: Sun, Jun 10 2007. 04 31 PM IST
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