Rediff Logo Business Find/Feedback/Site Index
HOME | BUSINESS | REPORT
August 19, 1999

COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES
SEARCH REDIFF


ICICI agrees to three-tier equity offering for Rs 22 billion

ICICI logo The ICICI Limited has decided to split the issuance of equity capital offerings, aggregating Rs 21.65 billion (US $ 500 million), in three ways. This is being done to protect the interests of all classes of shareholders.

The ICICI's board of directors approved the final structure for the issuance of equity targetting at both the international and domestic markets.

The domestic offering would comprise a preferential allotment of equity capital to principal domestic institutional shareholders like the LIC, GIC and UTI aggregating Rs 5 billion at a price of Rs 73 per share and a public issue of equity capital aggregating Rs 2.75 billion at a price of Rs 73 per share with an option to retain oversubscription upto ten per cent.

The balance would be by way of an international offering including an American Depository Receipts issue that would be initiated subsequent to completion of the domestic offering. The pricing of the international offering would be determined on the basis of the book building process.

Today's board decision follows an amicable settlement arrived recently between the ICICI Limited and domestic financial institutions over the proposed equity offerings. This move will ensure that there is no dilution in the combined 32.8 per cent stake held by the LIC, GIC and UTI in the ICICI's Rs 5.15 billion equity base.

Email this report to a friend The ICICI's shareholders had approved the proposal at the annual general meeting held in Bombay on July 30.

Earlier, the ICICI management had been contemplating to go in for an ADR issue without providing any equity offers to the domestic financial institutions as well as public. This prompted the institutional shareholders to protest the move, compelling the ICICI to change its mind and offer a preferential issue not only to the institutions but also to the public.

With the preferential and public offerings now priced at Rs 73 per share, the underlying shares of the ADR are unlikely to be priced below this level. For all overseas offerings tend to quote higher than the domestic price as these shareholders enjoy a tax advantage.

The company said in a statement that today's announcement of public offerings should be not distributed outside India, particularly in the United States or to any US persons. Any failure to comply with this restriction may be a violation of US securities laws. This will not be desirable because the company is contemplating an ADR issue in the near future.

UNI

ALSO SEE

ICICI enters personal finance segment
1942 film-maker to polish ICICI's 1999 image
Business news

Tell us what you think of this report
HOME | NEWS | BUSINESS | SPORTS | MOVIES | CHAT | INFOTECH | TRAVEL | SINGLES
BOOK SHOP | MUSIC SHOP | GIFT SHOP | HOTEL RESERVATIONS | WORLD CUP 99
EDUCATION | PERSONAL HOMEPAGES | FREE EMAIL | FEEDBACK