ICICI Bank extends goodies for retail investors

ICICI Bank extends goodies for retail investors

BS Reporter / Mumbai June 15, 2007

ICICI Bank is offering baits to entice retail investors to invest in its equity share issue aimed at mobilising Rs 10,062.5 crore from the domestic market, including a greenshoe option (or, the option to retain a part of the oversubscription) of Rs 1,312.5 crore.

Apart from a discount of up to 5%, the bank is providing small investors an easy option to pay for the shares on offer through the book-building process (an auction conducted by investment bankers).

Retail bidders also have the option to pay only Rs 250 per share on application, Rs 250 on allotment and the balance on call, which will be issued within six months of allotment. ICICI Bank will also list the partly paid shares for the benefit of retail investors.

ICICI Bank has defined retail investors as individual bidders, including Hindu undivided families and non-resident Indians (NRIs), whose bid amount does not exceed Rs 1,00,000. Up to 5% of the issue, or Rs 437.5 crore, has been reserved for existing retail shareholders of the bank. ICICI Bank officials said NRIs would have to take the Reserve Bank of India