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ICICI Bank sets QIP floor price at Rs 351.36

Sector analysts say ICICI is among the banks holding huge amounts in Covid provisions, which is 1.3% of its loan book. Its provision coverage ratio, too, is a high 79%.

ICICI Bank sets QIP floor price at Rs 351.36
Some of the marquee names that have been allotted the shares of ICICI Bank through the QIP include, Monetary Authority of Singapore, Morgan Stanley Investment Management Inc, and Societe Generale.

ICICI Bank on Monday announced the launch of its qualified institutional placement (QIP) and set the floor price at Rs 351.36 per share. A decision on the final price and allotment of shares will be taken on Friday, the bank said in a notification to the stock exchanges.

The bank had earlier received the board’s approval to raise up to Rs 15,000 crore through sale of shares. The entire amount is likely to be raised in a single tranche, sources said.

On Monday, shares of ICICI Bank ended at Rs 363.60 on the BSE, up 1.61% from the previous close.

Most large lenders have decided to hit the debt and equity markets this year amid disruptions arising out of the Covid outbreak and possibilities of deterioration in the asset quality. ICICI Bank has already raised over Rs 3,000 crore from sale of stakes in its two insurance subsidiaries.

Sector analysts say ICICI is among the banks holding huge amounts in Covid provisions, which is 1.3% of its loan book. Its provision coverage ratio, too, is a high 79%.

Analysts say the bank stands to gain from a further dilution of stake in its subsidiaries. In a report in June after the bank’s Q4FY20 results, Jefferies wrote, “We estimate that ICICI Bank has potential to monetise Rs 4,300 crore of additional gains from stake sales in listed subsidiaries if it brings down shareholding to 51%.”

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