Business

ICICI Bank Sets Floor Price for QIP at ₹351.36 Per Share

by Satakshi-Gauri
Aug 11, 2020 15:39

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Private lender ICICI Bank on Monday announced qualified institutional placement (QIP) of equity shares. The bank has set a floor price of QIP at ₹351.36 per share. The bank's board will meet on 14 August to decide the QIP issue price."A meeting of the issuance committee of Board of Directors of the Bank is scheduled to be held on Friday, August 14, 2020, to, inter alia, consider and determine the issue price for the Equity Shares to be allotted to qualified institutional buyers, pursuant to the Issue," the bank said in a stock exchange filing. The bank's issuance committee, which met on Monday evening, decided to open the issue immediately and set the floor price of ₹351.36 per share as per the regulations at the end of the 29 minute-long meeting, according to a regulatory filing by the lender. Recently, Mortgage lender HDFC Ltd has set the floor price at ₹1,838.94 per share for its qualified institutional placement (QIP) issue to raise ₹14,000 crores.

The bank will be joining a slew of lenders, including the largest pure-play mortgage lender HDFC which raised ₹14,000 crores last week, and also others like its peer Axis Bank and Kotak Mahindra Bank, who have raised capital as the system braces for a loan impairment impact. The Reserve Bank has been asking banks to load up on capital in advance, expecting a huge surge in bad asset pile because of the economic impact of the COVID-19 pandemic. ICICI Bank had decided to set aside ₹5,500 crores as provisions for possible reverses on the loan book in the June quarter, where its consolidated net grew 24 percent to ₹3,118 crores on the back of one-time gains on stake sales in insurance arms. In June quarter, ICICI Bank gained ₹3,036 crores on the treasury side on the back of a 3.96 percent stake sale in ICICI Lombard General Insurance and 1.50 percent stake sale in ICICI Prudential Life Insurance. On Monday, ICICI Bank scrip closed at ₹364.20 on BSE, up 1.75 percent from the previous close.