ICICI offers 35% to small investors in public issue

ICICI Bank has set aside 35% of its domestic public issue for retail investors. Within this, 5% of the issue is set aside for retail shareholders of the bank who can buy shares at a discount to issue price. Retail shareholders can pay for subscriptions in installments against which they will receive partly paid shares. However, they stand to lose their shares, if they fail to make payments in time.

In its draft red herring prospectus, submitted to the Securities Exchange Board of India (Sebi), the bank has said that 50% of the issue is set aside for qualified institutional buyers (QIBs) while another 15% is for non-institutional bidders. The bank will raise, at least, 35% from retail individual bidders.

The bank said that it might allot the equity shares to existing retail shareholders and retail individual bidders at a differential lower price compared to the price for qualified institutional buyers and non-institutional bidders. It has stated that the differential amount will be adjusted against the balance amount payable or it would be refunded to the respective shareholders or bidders.

Read more in The Economic Times article.