ICICI Bank issued 418,994,413 equity shares at an issue price of INR358 ($4.78)


ICICI Bank headquarters in Mumbai. (Credit: Sumedh/Wikipedia.org)

ICICI Bank, an Indian private sector bank, said that it has raised nearly INR150bn ($2bn) by completing the allotment of equity shares under its qualified institutional placement (QIP).

The bank issued 418,994,413 equity shares at an issue price of INR358 ($4.78).

ICICI Bank said that the equity issuance saw participation from the global and domestic investors. These included foreign portfolio investors, domestic mutual funds, and insurance firms.

The Monetary Authority of Singapore purchased 46 million shares for INR16.62bn ($220m) during the qualified institutional placement, which represents 11.08% of the overall allotted equity shares, reported The Times of India.

Morgan Stanley was the second-largest investor in the qualified institutional placement, with an investment of INR10.86bn ($150m) for 30.6 million shares, which represents 7.31% of the QIP size.

French banking major Societe Generale also took part in the qualified institutional placement with an investment of INR8.32bn ($110m) in return for 23.2 million shares, which is 5.55% of the QIP size.

ICICI Bank stated: “The issue price represents a 1.9% premium to the floor price determined based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations and a discount of 1.5% to the closing price of the Bank’s equity shares on the BSE/NSE prior to the launch of the issue.”

ICICI Bank will use the proceeds to strengthen capital adequacy ratio

The bank said that it will use the proceeds from the qualified institutional placement towards consolidating its capital adequacy ratio to enhance its competitive positioning. It will also use the capital for meeting general corporate requirements or any other purposes.

Furthermore, the bank claims to be well placed to cater to the market and benefit from the opportunities that would come along going forward.

ICICI Bank stated: “The Bank continues to be guided by its philosophy of ‘Fair to Customer, Fair to Bank’ and emphasizes the need to deliver a fair proposition to its customers while creating value for its shareholders.

“In these extraordinary times of the Coronavirus pandemic, the Bank will continue to strive to serve its customers and also emerge stronger as an institution.”

In May 2020, the Indian private sector bank reported a 26% growth in its profit after tax to INR12.21bn ($161m) for the quarter ended March 2020 compared to the same quarter in the previous year.