Touching new heights in India’s capital market, ICICI Bank raised USD 4.3 billion at home and overseas, selling its domestic portion at Rs.940 per share and the American depository shares for USD 49.25. The capital raised from the local market totaled USD 2.15 billion (Rs.87.5 billion), and from the American market, an equivalent amount of USD 2.14 billion.
ICICI’s share sale would get further inflated to USD 5 billion as it sells another USD 644 million through the greenshoe option to underwriters of the issue. This provision allows underwriters to purchase an extra 16% of the shares at the offer price if the demand for the shares surpasses projections and the stocks trade over the offer price.
A slew of public offers from Indian banks is expected to hit the market before the close of this financial year, and ICICI represents nearly half of their total. The Bank has done exceedingly well in the last 4 years, doubling its profits through loans to a 300 million member market.
The ICICI FPO bettered DLF’s performance, receiving bids for its entire offer within the first 20 minutes of its opening on June 19.The follow-on offer was almost 12 times the shares on offer. Qualified Institutional Buyers bid 21.6 times more than the shares that were allocated for them.
| The Wadhawan Group’s housing finance company Dewan Housing Finance (DHFL), is deliberating on a follow-on offer to raise capital. The company has been performing consistently well, reaching Rs. 89.30 last week on the stock exchange. The public offer would maintain its stake in Housing Development and Infrastructure Ltd (HDIL), another group company, which is going public on June 28. |
India’s growing economy brings fresh opportunities for banks like ICICI to extend loans, and officials at the bank are upbeat about bettering their previous year’s performance of Rs.27.6 billion, through a growth of 14% over the previous year.
Singapore’s official investment wing, Temasek Holdings and the Government of Singapore Investment Corporation have a stake of 9.56% each in the ICICI Bank, and are expected to raise their share to 10%. ICICI Bank was trading at Rs.953.75 last week, appreciating by 4.9%. Its depository shares fared even better with a 6.3% gain.
