ICICI Bank fixes price band at Rs.885 - Rs.950

ICICI Bank Ltd has announced that the public issue of equity shares of the Bank in India, of Rs 8,750 crore will be open for bidding through the book building route from June 19, 2007 to June 22, 2007. Up to 5% of the issue, or Rs 437.50 crore, is reserved for existing retail shareholders of the Bank (i.e. shareholders holding up to 108 shares of the Bank as of June 13, 2007). The issue has a Green Shoe Option of Rs 1,312.5 crore.

The price band for the issue has been fixed at Rs 885 to Rs 950 per equity share. Retail bidders, including existing retail shareholders, will be allotted shares at a discount of Rs 50 per share to the issue price determined through the book-building process. The minimum bid size will be six equity shares for retail bidders and existing retail shareholders. Bids should be in multiples of six equity shares for all bidders.

Under Payment Method-1, retail bidders are required to pay Rs 250 per share on application, Rs 250 per share on allotment and the balance amount on a call which is to be issued by the Bank within a period of six months from the date of allotment, and the discount would be adjusted against the call amount. Under Payment Method-2, retail bidders are required to pay the full bid amount less the discount, at the time of application.

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% of the bid amount at the time of application, have the option to pay Re 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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