ICICI Bank to raise Rs 8,750 crore through public issue

New Delhi, June 15 (UNI) India's largest private sector lendor ICICI Bank Ltd today said it will raise Rs 8,750 crore in the domestic market through issue of follow-on-public offer of equity share of Rs 10 each.

The issue will open on June 19, 2007 and will close on June 22, 2007.

In additon, there is a green shoe option under which the bank may allocate additional equity share up to Rs 1,312.5 crore and operate a price mechanism post-listing, with DSP Merill Lynch as the stabilising agent, ICICI Bank Executive Director Madhabi Puri Buch said.

The issue including the green shoe option aggregate to Rs 10,062.5 crore.

''Additional capital is required for future asset growth and compliance with regulatory requirement,'' said Ms Buch.

It will augment our capital base to meet the capital requirement arising out of our growth in our assets, primarily our loan and investment portfolio due to growth of the Indian economy, she added.

Of the consolidated Rs 20,125 crore, the capital raising exercise also plans to mop up 10,062.5 crore including a green shoe option of Rs 1,312.5 crore through an issue of American Depositary Shares (ADS) listed in the New York Stock Exchange (NYSE).

The issue will be made through 100 per cent book building route, and the price band will be annouced on Monday.

Up to five per cent of the issue amounting to Rs 437.5 crore is reserved for existing retail shareholders of the Bank, said Ms Buch.

In what has become a norm with major public issues, the retail bidders will have option to pay Rs 250 per share on application, Rs 250 on allotment and the balance amount payable on a call within a period of six months.

Non-Institutional Bidders have the option to pay Rs 250 on application and the balance on allotment.

Qualified Institutional Bidders (QIB), who have to pay a 10 per cent margin on application, have the option to pay Rs 250 less the margin amount on confirmation of allocation and the balance on allotment.

UNI