Private sector lender ICICI Bank Ltd. on Monday set the floor price at Rs 351.36 per share for its proposed share sale to raise up to Rs 15,000 crore.
The floor price for the qualified institutional placement of shares is at a discount of over 3% to Monday's close of Rs 363.60 on the BSE.
The bank's issuance committee, which met on Monday evening, decided to open the issue immediately and set the floor price at the end of the 29 minute-long meeting, according to a regulatory filing by the lender. The committee will meet again this Friday to determine the issue price for the equity shares to be allotted to qualified institutional buyers, pursuant to the issue.
The bank will be joining a slew of lenders, including mortgage lender HDFC which raised Rs 14,000 crore last week, and also others like its peer Axis Bank and Kotak Mahindra Bank, who have raised capital as the system braces for a loan impairment impact.
The Reserve Bank of India has been asking banks to loan up on capital in advance, expecting a huge surge in bad asset pile because of the economic impact of the Covid-19 pandemic.
ICICI Bank had decided to set aside Rs 5,500 crore as provisions for possible reverses on the loan book in the June quarter, where its consolidated net grew 24% to Rs 3,118 crore on the back of one-time gains on stake sales in insurance arms. ICICI Bank shares gained 1.61% to close at Rs 363.60 apiece on BSE, as against gains of 0.37% on the benchmark.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
