Private sector lender ICICI Bank on Monday said it has launched an institutional share sale offering that will see the bank raise as much as ₹15,000 crore (approximately $2 billion).
In an exchange filing, the bank said it has fixed a floor price of ₹351.36 apiece for the so-called qualified institutional placement (QIP) offering. ICICI Bank’s shares closed at ₹363.6 per share on the BSE on Monday, up 1.61% from the previous close.
Investment banks Bank of America, Morgan Stanley, BNP Paribas, ICICI Securities and others are advising ICICI Bank on the share sale.
ICICI Bank’s QIP follows the spate of share sales last week from HDFC Ltd, Axis Bank, Info Edge (India) Ltd and Alembic Pharma, which collectively raised over ₹26,600 crore in the span of a week.
Most lending institutions, including banks and NBFCs, have tapped the equity markets or are looking to do so in the coming weeks, as they look to bolster their balance sheets against disruptions caused by the covid-19 pandemic as well as to take advantage of opportunities arising out of the pandemic.
Treasury income stood at ₹3,763 crore at the end of June quarter compared to ₹179 crore during the corresponding period a year ago. During the quarter, the bank sold 4% stake in ICICI Lombard General insurance (ICICI General) and 1.5% in ICICI Prudential Life Insurance (ICICI Life).
The bank’s core income or net interest income also rose 20% year on year to ₹9,280 crore as on 30 June 2020 compared to ₹7,737 crore a year ago.
