ICICI Bank closes QIP; garners Rs 15,000 crore from share sale

NEW DELHI: The nation’s second largest non-public sector lender ICICI Bank on Saturday mentioned it has accomplished the allotment of fairness shares below its certified institutional placement (QIP) and raised roughly Rs 15,000 crore to fund its enterprise development and meet regulatory capital requirement.
Investors have been allotted 41.89 crore shares at a difficulty value of Rs 358 per fairness, the lender mentioned in an announcement.
“The concern value represents a 1.9 per cent premium to the ground value decided primarily based on the pricing formulation as prescribed below Regulation 176(1) of the SEBI ICDR Regulations and a reduction of 1.5 per cent to the closing value of the financial institution’s fairness shares on the BSE/NSE previous to the launch of the problem,” it mentioned.
Earlier this week, the financial institution had set a flooring value at Rs 351.36 per share for its QIP.
The concern opened on August 10 and closed on August 14.
“Pursuant to the allotment of shares, the paid-up fairness share capital of the financial institution stands elevated from Rs 12,952,832,416 consisting of 6,476,416,208 fairness shares of face worth Rs 2 every to Rs 13,790,821,242 consisting of 6,895,410,621 fairness shares of face worth Rs 2 every,” it mentioned.
During the share sale, Monetary Authority of Singapore picked up 4.6 crore shares, representing 11.06 per cent of the QIP measurement.
Other distinguished buyers included Morgan Stanley Investment Funds Global Opportunity Fund and Societe Generale-ODI choosing up 7.31 per cent and 5.55 per cent, respectively.
The fairness issuance additionally witnessed wholesome participation from the worldwide and home investor neighborhood, together with overseas portfolio buyers, home mutual funds and insurance coverage firms, it mentioned.
“The proceeds of the problem can be used in direction of strengthening the capital adequacy ratio of the financial institution, enhancing the financial institution’s aggressive positioning and/ or normal company necessities or every other functions as could also be permissible below the relevant legislation and authorised by the board or its duly constituted committee,” it mentioned.
The financial institution believes that it’s well-positioned to serve the market and profit from the alternatives that may come up going ahead.
In these extraordinary occasions of the coronavirus pandemic, the financial institution will proceed to attempt to serve its clients and in addition emerge stronger as an establishment, it mentioned.
ICICI Bank has joined a bunch of lenders, together with largest pure play mortgage lender HDFC which raised Rs 14,000 crore final week, and in addition others like its peer Axis Bank and Kotak Mahindra Bank, who’ve raised capital because the system braces for a mortgage impairment affect because of the COVID-19 disaster.
The Reserve Bank of India has been asking banks to mortgage up on capital prematurely, anticipating an enormous surge in dangerous asset pile due to the financial affect of the pandemic.
ICICI Bank had determined to put aside Rs 5,500 crore as provisions for attainable reverses on the mortgage guide within the June quarter, the place its consolidated web revenue grew 24 per cent to Rs 3,118 crore on the again of one-time positive aspects on stake gross sales in insurance coverage arms.

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