K.V. Kamath

MUMBAI: ICICI Bank will open its mega public issue of Rs. 8,750 crore on June 19 and the price band will be announced prior to the opening of the issue.

The issue will close on June 22.

In addition, there is a greenshoe option under which the bank may allocate additional equity shares of up to Rs. 1,312.50 crore and operate a price stabilisation mechanism post-listing, with DSP Merrill Lynch as the stabilising agent.

The public issue is part of the bank's consolidated capital raising exercise of Rs. 20,125 crore, including a greenshoe option of Rs. 2,625 crore. Of this total amount, Rs. 10,062.50 (including a greenshoe option of Rs. 1,312.50 crore) is proposed to be raised through an issue of American Depositary Shares (ADS), which will be listed on the New York Stock Exchange (NYSE).

The issue would be made through the book-building route, K. V. Kamath, Managing Director and CEO, said while addressing a press conference here on Thursday to announce the details of the public issue.

Up to five per cent of the issue or Rs. 437.50 crore is reserved for the existing retail shareholders of the bank. Retail bidders also have the option to pay Rs. 250 per share on application, Rs. 250 on allotment and the balance payable on a call, which is to be issued by the bank within six months from the date of allotment.

These partly paid shares will be listed and traded after payment of the amount due on allotment under a separate ISIN (International Securities Identification Number).

Retail bidders are defined as individual bidders (including Hindu Undivided Families and non-resident Indians) whose bid amount does not exceed Rs. 1 lakh. Non-institutional bidders have the option to pay Rs. 250 on application and the balance on allotment.

Qualified institutional bidders (QIBs), who have to pay a 10 per cent margin on application, have the option to pay Rs. 250 less the margin amount on confirmation of allocation and the balance on allotment.

Non- resident bidders (including foreign institutional investors) will require prior approval of the Reserve Bank of India to subscribe to partly paid shares.

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