InvestorQ : Why is ICICI Bank planning to raise Rs.15,000 crore through a QIP issue?
Mitali Bhutta made post

Why is ICICI Bank planning to raise Rs.15,000 crore through a QIP issue?

Answer
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Dawn Cherian answered.
2 months ago


ICICI Bank launched an institutional share offering worth Rs.15,000 crore to shore up its capital base as it prepares for the post-pandemic revival. ICICI Bank fixed a floor price of Rs.351.36 per share for the QIP placement, slightly lower than CMP.

There have been a plethora of such QIP placements in the last few weeks including marquee names like HDFC Ltd, Axis Bank, Info Edge and Alembic Pharma. Between them, these companies have raised Rs.27,000 crore during the week.

Most banks and even NBFCs are looking to tap the QIP markets in the coming weeks in order to bolster their balance sheets and create a war chest against disruptions caused by the pandemic. They also need to be capitalized to ride the post-COVID opportunities.

During the Jun-20 quarter, ICICI Bank had shown a sharp spurt in profits but that was largely contributed by the treasury division via the sale of stakes in ICICI Lombard and ICICI Pru Life. ICICI Bank plans to continue this monetization in the coming months too.