ICICI Bank raises Rs 15,000 Cr in equity; issue price at Rs 358 per share
The issue price represents a 1.9 per cent premium to the floor price determined based on the pricing formula as prescribed under SEBI Regulations.
ICICI Bank has collected Rs 15,000 crore (about $ two billion) through a Qualified Institutions Placement (QIP) of equity shares (418.99 million) for Rs 358 per share.
The issue price is 1.9 percent more than the floor price computed using the pricing mechanism outlined in SEBI Regulations. The floor price per share was set at Rs 351.36.
According to the Bank, the offering price represents a 1.5 percent discount to the closing price of the Bank’s equity shares on the BSE/NSE previous to the issue’s introduction.
The offering proceeds would be used principally to raise the Bank’s capital adequacy ratio, improve the Bank’s competitive posture, and meet general corporate obligations.
As of June 30, 2020, ICICI Bank’s Capital Adequacy Ratio (CAR) was 16 percent, with Tier I at 14.72 percent.
Many state-owned banks, including Punjab National Bank, Bank of Baroda, and Canara Bank, are also raising cash.