InvestorQ : What does ICICI Bank propose to do with the Rs.15,000 raised from QIPs?
Sam Eswaran made post

What does ICICI Bank propose to do with the Rs.15,000 raised from QIPs?

Answer
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Moii Chavate answered.
4 weeks ago


ICICI Bank raised Rs 15,000 crore through placement of equity shares via Qualified Institutions Placement. It basically raised Rs.15,000 crore by placing 419 crore shares with institutional investors issued at a price of Rs.358 per share.

This represents a small 1.9% premium to the floor price of Rs.351.36 determined based on the pricing formula prescribed by SEBI Regulations. The issue price also represents a 1.5% discount to the closing price of the stock.

ICICI Bank proposes to use the proceeds of the QIP issue to strengthen its capital adequacy ratio, which currently stands at 16% with 14.72% Tier-1 capital. There is no immediate need for capital but the bank is just playing it safe.

The issuance saw healthy and robust participation from the global and domestic institutional investors, including foreign portfolio investors, domestic mutual funds and insurance companies.

Some of the marquee allottees included Monetary Authority of Singapore, Morgan Stanley Investment Management and SocGen. This appears to be a season of fund raising as Axis and HDFC have already raised more than Rs.10,000 crore in the post-pandemic scenario.