ICICI Bank prices FPO at Rs 940 a share

 It priced its American depositary share (ADS) offering of $2.14 billion at $49.25 per ADS, translating into a price of about Rs 1,002.5 per equity share and representing a premium of about 6.6 per cent over the domestic issue price.

Each ADS represents two equity shares of the bank. The ADS offering has a greenshoe option of $0.32 billion. ICICI Bank shares yesterday closed at Rs 953.75, up 0.43 per cent, on the Bombay Stock Exchange.

ICICI Bank had received revised offers from a string of institutional investors, including Life Insurance Corporation of India, State Bank of India and Warburg Pincus, which helped the bank price the issue near the top end of the price band of Rs 885-950 a share. The institutional investors put in revised bids at prices ranging from Rs 940-950 a share, against their initial bids of Rs 900-920.

The offer had initially failed to attract enough bids at prices above Rs 930. In the first three days, bids received around Rs 940-950 would have covered only about half of the shares on offer as over 90 per cent of the bids were in a range of Rs 900-930.