The country's biggest ever follow-on public issue (FPO) for Rs 8,750 crore ($ 2.13 billion) by ICICI Bank was fully subscribed within the first 10 minutes of its opening today morning following big bids by institutional investors. At the end of the first day, the FPO was subscribed by 2.74 times.There are three more days for the issue to close.The bank received bids for 270.84 million shares for the 98.87 million shares on offer. Bids for 1,77,516 shares were at the cut-off price.
Data available with the National Stock Exchange shows that foreign institutional investors (FIIs) have placed bids for shares out of the shares reserved for qualified institutional buyers (QIBs)."Mutual Funds are sitting on good cash. This coupled with FII interest has led to oversubscription of the FPO," Kashyap Jhaveri, analyst at Emkay Share, said.The QIB portion was subscribed by 5.6 times, say sources.
"It's not surprising. The issue was expected to get good response from investors. The liquidity situation continues to be good in the Indian markets," said Jayesh Shroff, fund manager, SBI Mutual Fund.
Shares of the bank traded at Rs 944.40 on the 30-stock Sensex of the Bombay Stock Exchange(BSE), up by 2.89% from its previous close.
The Mumbai-headquartered bank is offering shares in a price band of Rs 885-950 per share. For retail investors (those applying for Rs 1 lakh or lower amount), the bank is offering a discount of Rs 50 a share.
The minimum bid size is six equity shares for retail bidders and existing retail shareholders.
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