ICICI raises Rs 1,294 cr via green-shoe option

ICICI Bank has raised Rs 1,294 crore through its green-shoe option in the local market. The bank had raised Rs 8,750 crore through its local issue and an equal amount through its overseas issuance, too.

The bank was looking at a green-shoe option of Rs 1,312.5 crore. These shares were also meant to be used for stabilisation purposes, to stabilise the shares in the market.

However, the bank has used only around Rs 18.5 crore for stabilising its shares. The bank had earlier priced its local issue at Rs 940. However, for retail shareholders, the bank had given a discount of Rs 50 per share.

The share price of the bank in the past two weeks has fallen much below the issue price. It closed on Tuesday at Rs 877.65. In the overseas market, the bank had priced its ADS at $49.25 or Rs 1,002.5 per share. The ADR price is currently at $43.

ICICI Bank, Sterlite mop up $4 bn from US in a week

Two Indian companies, including the country's largest private lender ICICI Bank, have raised over four billion dollars last week from the US market.ICICI Bank, in the biggest offering by an Indian company, raised $4.3 billion in a global follow-on issue, half of which was in the form of American Depository Shares.

The ADS issue of 42.14 billion, including a green shoe option of $0.32 billion, was priced at $49.25 each, 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.

Earlier, Vedanta group's Sterlite Industries, a non-ferrous metal and mining firm, raised $1.75 billion through an initial public offering on the NYSE.Each ADS represents one equity share of the firm and the were priced at $13.44 each.

Combining ICICI Bank's 42.46 billion offer and 41.75 billion of Sterlite Industries India Ltd, the two firms have mopped up over four billion dollars from the US market.

ICICI Bank prices Follow-on issue at Rs 940 per share

ICICI Bank Ltd on Monday said it has priced its recently concluded follow-on issue at Rs 940 per equity share. The Rs 8,750-crore issue was made at an offer price of Rs 885-950 per share and was open from June 19-22.

At 10:51AM, ICICI Bank shares were down nearly 1 per cent at Rs 944.50 on the Bombay Stock Exchange in line with the general weakness in banking shares. So far, the stock has seen a high of Rs 960 and low of Rs 940 with volume traded at 42,306 against two-week average of 3,96,524 shares.

The issue price represents a premium of 3.6 per cent to the average closing price since the announcement of the issue on April 28.

The bank’s American depositary share offering of $ 2.14 billion has been priced at $ 49.25 per ADS, which amounts to Rs 1,002.5 per equity share. It represents a premium of 6.6 per cent over the domestic issue price.

The ADS offering, which represents two equity shares of the bank, has a green shoe option of $ 0.32 billion.

Tata Motors to raise $ 450 mn from intl mkt

Tata Motors on Wednesday said it will raise 450 million dollars (Rs 1,832 crore) from the international market to meet product development expenditure and fund other corporate projects.

The committee of directors, at its meeting today gave in principle approval, for raising of additional long term resources of 450 million dollars, excluding green shoe option, by issue of appropriate securities in the international markets, Tata Motors told the Bombay Stock Exchange.

Tata Motors recently launched a mass transport passenger vehicle - Magic, developed on the platform of its popular mini truck Ace and a higher capacity van - Winger.
The company plans to roll out more variants in the commercial passenger vehicle segment and plans to invest Rs 5,000-6,000 crore over the next three years in the segment.
Shares of Tata Motors closed at Rs 686.90, up 3.53 per cent on the BSE.

ICICI Bank FPO opens on June 19

The follow-on issue of ICICI Bank opens Tuesday and closes no June 22. The bank plans a domestic float and ADS issue. The price band for the issue will be fixed on Monday.

The domestic issue is for Rs 8,750 crore, with a greenshoe option of Rs 1,312.5 crore. The bank also plans an American depositary share issue of Rs 10,100 crore. Both the ADS and domestic issues will run simultaneously.

Of the total domestic float, 5 per cent will be reserved for existing retail shareholders, and they will get 5 per cent discount to issue price. However, only those shareholders who hold shares less than Rs 1 lakh in value on record date, which was June 13, will be eligible.

The offer constitutes 19.8 per cent of diluted equity, and the ADS component about 9.9 per cent of post-issue capital.The issue is being made to meet the capital adequacy requirements and augment bank's capital to fund future requirements.The bank's CAR is currently at 11.69 per cent. Post-issue it is seen at 15 per cent.

Omaxe to raise upto $400 mn in July IPO

Indian developer Omaxe Ltd. plans to raise $300 million to $400 million (Rs1,633 crore )through a domestic IPO in July, according to a term sheet distributed on 13 June, testing investor demand for Indian property companies.

Omaxe’s sale of nearly 18 million shares will come on the heels of rival developer DLF Ltd., which is raising $2.4 billion, India’s largest IPO ever. It was fully subscribed a day after it opened to institutional investors on 11 June.

Omaxe filed for an IPO in December with a fund-raising target of $339 million, but media reports earlier this year suggested the deal would be closer to $200 million because of weak Indian stock markets and concern over domestic land valuations.

Omaxe had sales of about $400 million in 2006, and the company is selling 10.3% of its equity, with a greenshoe over allotment option of 1.75 million shares, the term sheet said.Citigroup , Merrill Lynch and UBS are joint bookrunners for the deal, the term sheet said.

Read more in The Livemint article.

Sterlite`s $2 bn ADS to list in mid-June

Sterlite Industries is set to list its $2 billion (Rs 8,000 crore ) American Depository Shares (ADS) issue, the largest by any Indian company, with the New York Stock Exchange by the middle of this month.

Sources close to the development said the company would list the shares in the week beginning June 18. Road-shows for the issue, which will part-finance its plan to set up a power plant at an investment of Rs 12,500 crore, will begin towards the end of this week.

A team comprising Sterlite executives and representatives of its banks will visit Europe, the US, Hong Kong, Singapore and Japan to sell the issue. Merrill Lynch, Citi, Morgan Stanley and Nomura are bankers to the issue.

They added that the company would sell 125 million ADS under the book-built issue with a minimum price of Rs 531.84. The issue has the option to sell an additional 18.75 million shares, or 15 per cent of the issue, depending on the response.

Read more in The Business Standard article.