Continuing the capital raising spree of private lenders, ICICI Bank on Saturday said that it has successfully raised almost Rs 15,000 crore through Qualified Institutional Placement
Continuing the capital raising spree of private lenders, ICICI Bank on Saturday said that it has successfully raised almost Rs 15,000 crore through Qualified Institutional Placement (QIP). The lender said that it has issued 418,994,413 shares at an issue price of Rs 358 per equity share, a discount of Rs 3 from its closing price on Friday. The private sector lender had earlier this week on Saturday set the floor price at Rs 351.36 per share for the QIP. ICICI Bank follows a long list of private banks that have undertaken fund raising to beef up their capital.
Some of the marquee names that have been allotted the shares of ICICI Bank through the QIP include, Monetary Authority of Singapore, Morgan Stanley Investment Management Inc, and Societe Generale. While the central bank of Singapore picked up 11.08% shares, Morgan Stanley Investment got 7.31% of the shares, and the French multinational investment bank and financial services company got Societe Generale 5.55% shares. “The equity issuance witnessed healthy participation from the global and domestic investor community, including foreign portfolio investors, domestic mutual funds and insurance companies,” ICICI Bank said in a release.
The private sector lender informed the bourses that the amount raised via the QIP, will be used towards strengthening the capital adequacy ratio of ICICI Bank and improving it’s competitive positioning and general corporate requirements. “The Bank believes that it is well-positioned to serve the market and benefit from the opportunities that would arise going forward,” ICICI Bank said.
Along with ICICI Bank, other private financial institutions to have raised capital through the markets include Axis Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HDFC. The recent fund raising efforts by various lenders are being seen as a positive signal by many as the overhang of capital requirement to deal with the pandemic is now out of the way for lenders. However, it still remains to be seen how the situation turns out to be for lenders after the moratorium period ends. ICICI Bank stocks are currently trading at 25% to its 5-year P/Adj. BV. ICICI Bank is one of the top picks of leading domestic and global brokerage firms
