Icici Offers 25 Per Cent Banking Arm Shares At Rs 35

The Industrial Credit and Investment Corporation of India (ICICI) has offered for sale 25 per cent of the shares of ICICI Banking Corporation Ltd (ICICI-Bank) at Rs 35 per share.

ICICI Bank is currently a fully owned subsidiary of ICICI.

With regards to the above public offer, the bank has obtained the approval of the Reserve Bank of India.

Some months ago, the bank had asked the central bank for permission to divest only to the extent of 25 per cent in the first tranche as opposed to 60 per cent as required by the Reserve Bank of India.

The bank had received permission for this.

 

The draft letter of offer for sale of equity shares has been filed with the Securities and Exchange Board of India and the offer is open for public subscription by the last week of July 1997.

The banks paid-up capital comprises 15 crore equity shares issued at par.

The issue of the additional shares will enable ICICI Bank to purchase from ICICI some of the office premises occupied by it at present.

The purchases will be at a valuation made by independent valuers, subject to requisite statutory approvals.

In addition, 22,50,000 shares are also being offered for sale at the same offer price to the employees of ICICI, ICICI Bank and other group companies.

As per the banks latest financial results for the year ended March 31, 1997, the bank has posted a net profit of Rs 40.12 crore as against Rs 16.51

crore at the end of the financial year 1995-96.

While interest income went up to Rs 195.05 crore from Rs 116.13 crore in the financial year 1995-96, other income went up from Rs 42.61 crore to Rs 24.91 crore in the corresponding period.

At the same time the size of the balance sheet has grown with total assets increasing from Rs 1157.12 crore to Rs 1781.86 crore.

The issue of additional shares will enable the bank to purchase from ICICI some of the office premises occupied by it at present.The purchases will be at a valuation made by independent valuers, subject to requisite statutory approvals.