Big draw

Mumbai, Dec. 7: ICICI Bank has priced its domestic public offer at Rs 525 per share. The bank’s American depository share (ADS) issue was priced at $26.75, translating to Rs 618 per share.

The domestic issue with a price band of Rs 505-545 generated was lapped up by qualified institutional buyers, including foreign institutional investors (FIIs) and mutual funds. However, retail investors bid for only 90 per cent of the shares allotted for them.

For retail investors, ICICI Bank had announced a discount of 5 per cent on the issue price. On this basis, retail investors will have to pay Rs 498.75 per share. The bank has raised over Rs 7900 crore.

ICICI Bank said the ADS pricing represents a premium of around 18 per cent on the domestic issue price. Each ADS represents two shares of the bank.

The international offering was made under the bank's registration statement filed with the Securities and Exchange Commission (SEC). Around 25 per cent of the ADS issue, worth Rs 500 crore ($108 million), will go to investors in Japan.

The bank expects to issue and deliver the shares and ADSs by December 16.

The domestic public issue, which opened on December 1 and closed on Tuesday, aimed to raise Rs 5750 crore. This included a greenshoe option of Rs 750 crore.

Among the various categories of investors, the portion set aside for institutions was subscribed more than 14 times. High net worth individuals put in bids for 1.73 times the number of shares that had been allotted to them.

The country’s second-largest bank came out with the offer to increase its capital base to meet funds requirements arising from growth in its assets. The issue was the biggest by a domestic firm after Oil and Natural Gas Corporation’s (ONGC) flotation last year.

On the BSE today, the ICICI Bank scrip ended at Rs 542.75 after opening at Rs 531.05 and rising to an intra-day high of Rs 544.