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ICICI to delist from London SE, enlist at NYSE, offer ADRs

The Industrial Credit and Investment Corporation of India Limited is planning a $ 350 million American Depository Receipts in the later half of September.

The ICICI will get its existing Global Depository Receipts delisted from the London Stock Exchange, company managing director and chief executive officer M V Kamath said today.

Having fallen in line with the US-based GAAP accounting standards, the ICICI would be the first Indian company to be listed on the New York Stock Exchange.

Earlier, Infosys Technologies got this distinction for the country's maiden listing on NASDAQ.

Addressing a news conference in New Delhi to announce the Rs 2.75 billion issue of shares in the domestic market, Kamath said that the existing GDR-holders would be given an option to get their instruments converted into ADRs.

The swap ratio would be one GDR for one ADR for the investors. The company had raised $ 220 million in its GDR offering in 1996.

While the ICICI's domestic offering is priced at Rs 73 per share, inclusive of a premium of Rs 63, the ADR pricing would be decided by the "book building exercise" at the time of the issue expected some time later next month.

The company was advised to time its issue for mid-September for the overseas market.

''We were advised that after mid-September, the overseas market for new issues will somewhat slow down because of the Y2K problem. But at this point of time, there is a good appetite for the issues from South East Asia,'' Kamath said.

The ICICI's capital adequacy ratio will jump from 12 per cent to 16 per cent post-ADR / domestic issue as against the RBI's requirement of eight per cent.

Kamath said that the ICICI would certainly look at opportunities for taking its ''universal banking'' offshore since it is fully geared up in terms of technology. ''We are fully wired and have launched Internet banking,'' he said. However, he saw good opportunity at this point of time in the domestic market itself.

Asked about the timing of the issue which coincides with general elections, Kamath said, ''We have been told by our advisors that September would be the best time for the issue. The Y2K scare would affect the sentiments for the issue thereafter.''

UNI

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