Pricing flexibility for follow-on global offers

New Delhi, Nov 17 | Updated: Nov 18 2005, 05:57am hrs
In a move that could lend ICICI Bank flexibility in pricing its Rs 7,000 crore domestic and American Depositary Shares offer, the finance ministry on Thursday exempted companies planning follow-on global offers priced at or above the domestic prices within 30 days, from the requirement of complying with the revised pricing guidelines issued recently.

Companies will, however, have to take Sebi approval for such issues. The market regulator will specify the percentage to be offered in the domestic and ADR/GDR markets, the finance ministry said in a press release.

As per the guidelines issued on August 31, the global offer should be made at a price not less than the higher of: (i) the average of the weekly high and low closing prices of the shares quoted on the exchange during the six months preceding the relevant date and, (ii) the average of the weekly high and low closing prices during the two weeks preceding the relevant date.

It further clarified that in terms of amendment to the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (through depository receipt mechanism) Scheme, 1993, unlisted companies, which have already issued GDR/ FCCB and are to list in the domestic market, would be required to do so by March 31, 2006.