ICICI Bank Limited FPO Information
- Public Issue Open : June 19, 2007 to June 22, 2007
- Public Issue Price: Rs. 885/- to Rs. 950/- Per Equity Share (Retail bidders discount: Rs 50 per share)
- Market Lot: 6 Shares
Payment Methods for Retail Individual Bidders: ICICI Bank FPO has two payment methods for retail applicants. Payment Method 1:Retail Individual Bidders can pay Rs. 250 per share on application. Rs 250 on allotment and the balance on call. ICICI Bank reserves the right to call the balance amout any time within 6 months from the date of allotment. Payment Method 2:Retail Individual Bidders can pay full application money while submitting the bid.
* Under the first option, I wonder if the ICICI public issue gets oversubscribed, ICICI Bank will adjust the application money and the call money and give us fully paid up shares.Am I right? One more thing read following point of prospectus -Partly paid shares will not be traded for a period of approximately 45 days from the issue of the Call Money Notice. We will fix a record date to determine the list of shareholders to whom the call notice would be sent for each call, if applicable. As per the present regulatory framework, trading of our partly paid Equity Shares is expected to be suspended for a period of approximately 45 days,starting five days prior to such record date for the call concerned. The process of corporate action for credit of fully paid shares to the demat account of the shareholder may take about two weeks from the date of payment of the amount payable on the call. During this period shareholders who pay the amount payable on the call for the partly paid shares will not be able to trade in those shares. Discount for Retail Individual Bidders:
Retail bidders will be allotted shares at a discount of Rs 50 per share to the issue price determined through the book-building process. Under full payment method, retail bidders are required to pay the full bid amount less the discount, at the time of application Why Yes? - 1. ICICI BanK Share Price Make Good movement on NSE for last 5 years from 280 (7/04/2004) to 957 (20/06/2007) 2 . This is the third time ICICI Bank is raising funds through a public issue. Given below are a list of features which make the ICICI Bank public issue very attractive. Upto 5% discount to the FPO issue price (only for retail investors) Part Payment Option (only for retail investors) Green Shoe Option 5% Reservation to existing shareholders (record date June 13th)
ICICI Bank Public Issue Price Band : ICICI Bank has fixed the price band for its public issue between Rs. 885 and Rs. 950 which I must admit is on the higher side. But the good news is that Retail Investors will get a discount of Rs. 50 per share on the Issue Price fixed by ICICI Bank.
2. Follow on issues in 2004 and 2005 gave Good Returns to the customers.
NSE website - http://www.nse-india.com/marketinfo/ipo/ipo_pastissues.jsp?year=2005
3. ICICI Bank plans 400 new branchesICICI Bank plans to add 400 new branches across the country in the near future. The bank currently has 950 branches and over 3,400 ATMs in the country. The bank opened 111 new branches in last fiscal.
4. Brokers recommendations about ICICI Bank stock on ICICIdirect.
Why No? -
ICICI Bank housing loan growth declines to 20% The housing loan portfolio business of ICICI Bank is at present growing at 20 per cent, down from 45 per cent earlier. According to the source, the real estate business, which was earlier growing at 45 per cent, is now growing at 20 per cent and this is sustainable. At present, 50 per cent of the bank's retail book is contributed by housing loans.
Whether go for it or not? -
Current market situation is very unpredictable and almost flat. Now most of the analyst are predicting that after ICICI FPO the RBI may hike the CRR rate, it would have an impact on the bank and real state stocks and two big IPOs DLF and ICICI bank will list at the same time, so the liquidity crunch is there in the market. This may lead to a correction of another 1000 -1500 Points. If we take the higher band of 950/- of FPO price of ICICI, the retail investor will get the same at 900/- ( Rs 50/- discount ) the current price is 957/- , so if we will get the same at the same price of 900/- at the time of listing (If market corrects). So don't go for it if your interest is listing gain, better wait and invest in Spice Telecom and Omaxe IPOs, which will be coming later in June and Mid July respectively.
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