ICICI Bank approves five-for-one stock split

Written by Express News Service | Mumbai | Updated: Sep 10 2014, 16:26pm hrs
ICICI bankThe board of directors of ICICI Bank has considered and approved the sub-division (split). (Reuters)
ICICI Bank, Indias largest private sector lender, has announced a five-for-one stock split in a bid to increase liquidity in the scrip.

The board of directors of ICICI Bank has considered and approved the sub-division (split) of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each, the bank said in a statement.

Each American Depositary Share (ADS) of ICICI Bank will continue to represent two underlying equity shares as at present. The number of ADSs held by an American Depositary Receipt holder would consequently increase in proportion to the increase in number of equity shares. The sub-division of shares will be subject to approval by the shareholders, which will be sought by postal ballot, and any other applicable statutory and regulatory approvals. Accordingly, the record date for sub-division of shares will be announced in due course, the bank said.

ICICI Bank shares declined by 1.31 per cent to Rs 1,547.70 on the BSE on Tuesday.

The bank has a shareholder base of 571,375 as of June 2014, as per the BSE website. The total number of shares is 115 crore. While foreign investors hold 40 per cent stake, domestic institutions have 23.2 per cent stake in the bank. Companies normally go for stock split to increase liquidity and make it more accessible to retail investors. It will make the stock more affordable to investors, said BSE broker Pawan Dharnidharka.