ICICI fixes issue price at Rs 885-950 per share

Mumbai, Jun 16 (UNI) ICICI Bank has fixed a price band of Rs 885-950 per share for its Rs 8,750 crore public offer in domestic market that will open for investors on June 19.

When it announced its Public Issue on June 14, the Bank had put off the issue price for a later date ''after consulting with the book running lead managers (BRLMs)''.

As expected by the market observers, the issue price has come in line with ICICI's current market price, which closed on friday at Rs 908 up by Rs 2.75 from the previous close of Rs 905.75.

In the total issue, the bank had left a five percent share (around Rs 437.5 crore) for the existing retail investors. The issue has also left an additional green shoe option of Rs 1,312.5 crore.

Retail bidders, including existing retail shareholders, will be allotted shares at a discount of Rs 50 per share, the Bank said. The minimum bid size for all retail investors will be six equity shares.

This apart, Retail investors, who have been allocated 35 per cent of total issue, can purchase shares by paying Rs 250 on application, Rs 250 on allottement of share and the rest on a call within six months of issue.

The shares can also be purchased by paying full bid amount less the discount. Non-Institutional Bidders have the option to pay Rs 250 on application and the balance on allotment.

Qualified Institutional Bidders (QIBs), who have to pay 10 per cent of the bid amount at the time of application, have been given the option to pay Rs 250 on allocation and balance on allotment.

Non Resident bidders, including Foreign Institutional Investors (FIIs) have to seek prior approval of the Reserve Bank of India to subscribe partly.

ICICI Bank, which is the second largest bank in India, will mop-up USD 2.5 billion from the Issue of American Depository Shares (ADS) taking the total amount accumulated to Rs 20,000 Crore. The issue will close on June 22.

UNI