ICICI Bank Public Issue Opens on June 19, 2007

ICICI Bank Ltd has announced that the public issue of equity shares of the Bank in India will open on June 19, 2007. The issue will close on June 22, 2007. The issue size is Rs 8,750.0 crore. In addition, there is a Green Shoe Option under which the Bank may allocate additional equity shares up to Rs 1,312.5 crore and operate a price stabilisation mechanism post-listing, with DSP Merrill Lynch as the stabilising agent. The issue including the Green Shoe Option aggregate to Rs 10,062.5 crore.

The public issue is part of the Bank's consolidated capital raising exercise at Rs 20,125 crore including a green shoe option of Rs 2,625.0 crores. Of this total amount, Rs 10,062.5 crore (including a green shoe option of Rs 1,312.5 crore) is proposed to be raised through an issue of American Depositary Shares (ADS) listed in the New York Stock Exchange (NYSE).

The issue will be made through the book-building route, and the price band will be announced prior to the opening of the issue. Up to 5% of the issue, or Rs 437.5 crore, is reserved for existing retail shareholders of the Bank. Retail bidders also have the option to pay Rs 250 per share on application, Rs 250 on allotment and the balance amount payable on a call which is to be issued by the Bank within a period of 6 months from the date of allotment. These partly paid shares will be listed and traded after payment of the amount due on allotment under a separate ISIN.

Retail bidders are defined as individual bidders (including HUFs and NRIs) whose bid amount does not exceed Rs 100,000. Existing retail shareholders are defined as bidders holding equity shares of the Bank on June 13, 2007, the number of shares held by whom as of that date multiplied by the closing price of the Bank's equity shares on June 12, 2007 on the National Stock Exchange of India Ltd does not exceed Rs 100,000.

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 a 10% margin on application, have the option to pay Rs 250 less the margin amount on confirmation of allocation and the balance on allotment.

Non-Resident bidders (including FIIs) will require prior approval of the Reserve Bank of India to subscribe to partly paid shares.

Source : Equity Bulls

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