ICICI to keep a 5% reservation for small shareholders

Mumbai, Nov 23 | Updated: Nov 24 2005, 06:08am hrs
The country's second largest commercial bank, ICICI Bank, has decided to keep a 5% reservation in its Rs 7,000 crore follow-on public offer (FPO) for its existing small share holders who hold equity shares of the bank, not exceeding in aggregate Rs 1,00,000/ in value.

The bank plans to kick-off its road show for its FPO from Thursday. It has filed its Red Herring prospectus with Sebi and received its approval for the public issue of its equity shares.

Pursuant to the same, the bank is in the process of filing the Red Herring prospectus with the Registrar of Companies, Ahmedabad. This value of the shares which is entitled for 5% reservation would be determined on the basis of closing price of equity shares on National Stock Exchange(NSE) on Friday. The details relating to such reservations have been disclosed in the Red Herring prospectus.

Other details, such as the price band for the FPO, will be announced in due course.It plans to raise Rs 8,050 crore (Rs 7,000 crore with a 15% greenshoe option) through its FPO. Of the Rs 8,050 crore, the bank plans to raise $1.4 bilion through the American depository shares (ADS) route.

The bank plans to offer up to 11.84 crore shares at a maximum price of $24.37 per ADS, which works out to a price of nearly Rs 557 per share, given that each ADS represents two underlying shares.