Abstract:
ICICI Bank IPO targeted at raising substantial amount of capital from the domestic capital market of India. ICICI Bank planned to open this Initial Public Offering on 18th June, 2007.
ICICI Bank IPO refers to the Initial Public Offering of ICICI Bank, which aimed at raising ten thousand crores of rupees. This IPO deal of ICICI Bank was scheduled to open on 18th June, 2007.
ICICI Bank made this IPO filing in order to raise capital from the domestic market. Actually the Bank was following an extensive Capital Raising Program which had the objective of raising a bulk capital worth $5 billion. Out of this $5 billion, the bank planned to raise $2.5 billion by issuing American Depository Receipts. The remaining part was to be raised from the domestic capital market of India by Initial Public Offering.
In this regard, Foreign Investment Promotion Board allowed ICICI Bank to sell up to 24% of equity in ICICI Holdings to the international investors. But, it was declared by the ICICI Bank, that it would offer only 5% of its equity holdings to the foreign investors.
There was speculations in the market that ICICI Bank will fix the price range of its' shares somewhere above 900 rupees in its Initial Public Offering. Some market sources revealed that ICICI Bank was going to offer shares at a discounted price to the retail investors. According to the investment bankers, ICICI Bank decided to take such a step in order to attract retail investors and to raise the demand for their shares.
There was information that, ICICI Bank was considering the option of transferring the equities of its' holdings like ICICI Lombard General Insurance, ICICI Prudential Asset Management and ICICI Prudential Life Insurance. But, the transfer of these equity holdings required approval from RBI(Reserve Bank of India) and IRDA(Insurance Regulatory and Development Authority).