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ICICI's ADR price to be fixed today, all set for debut on NYSE

Prakash Chawla in New Delhi

Financial intermediary ICICI Limited will become the first Indian company ever to be listed at the New York Stock Exchange on September 22 when the pricing for its $ 275 million American Depository Receipts or ADRs is fixed and trading begins.

''After regularising of the clearance by the Securities Exchange Commission simultaneously with the completion of road-shows, book-building and price fixing, the trading will begin,'' ICICI joint general manager Madhavi Puri said.

Company managing director K V Kamath has already reached New York for the listing ceremony with NYSE President William R Johnston.

ICICI which has already raised over Rs 2.75 billion from the domestic market, is breaking from the traditional route of going in for ADRs. Instead of first filing documents with the SEC and the management making roadshows and the lead manager going and building books, all the steps are being simultaneously taken.

The company is already following the US Generally Accepted Accounting Principles. ''We are doing it considering the potential and goodwill of ICICI,'' Puri said.

As per GAAP financial statements, net income of the company was Rs 7.52 billion for the year ended March 31, 1999.

Stock market favourite Infosys Technologies is already listed on the Nasdaq, the stock exchange better known for technology company scrips.

While the issue size is $ 275 million with ICICI having the right to retain over-subscription of $ 40 million, it is not known what pricing would be fixed and what quotes the scrip will get at India's maiden entry in the NYSE. However, the ICICI scrip is trading at Rs 80 in the Bombay Stock Exchange.

''While the price will be fixed by the issuer and the lead manager based on the book-building valuations, we will have no idea about the pricing''. This is because the road-shows are on. ''Even at this moment, the road-shows are on and book-building continues,'' Puri said.

With the issue of ADRs, ICICI will be delisting from the London Stock Exchange where it had its GDRs traded. The GDR-holders are getting an option to shift to ADRs.

With universal banking at the core of its future business, ICICI is looking for growth in retail banking besides the traditional infrastrucutre lending. All its products will be technology driven. Its offshoot, ICICI Bank has already launched Internet banking.

''We believe that we can gain competitive advantage over existing competitors by leveraging our local market knowledge, superior product expertise, technology edge and strong brand name,'' Kamath had said in his latest letter to shareholders.

UNI

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