ICICI plans 315 mn ADR issue

MUMBAI, AUGUST 30: Indian term lending institution ICICI Ltd said on Monday its proposed international equity issue of up to 315 millio...

MUMBAI, AUGUST 30: Indian term lending institution ICICI Ltd said on Monday its proposed international equity issue of up to 315 million would comprise American Depository Receipts ADRs.

quot;Based on a review of the progress made so far, we intend to make an issue of ADRs, instead of Global Depositary Receipts GDRs,quot; ICICI joint managing director Lalita Gupte said.

quot;The pricing of the ADRs would be determined on the basis of the book building process,quot; she said, adding, quot;ICICI intends to list the ADRs on the New York Stock Exchange NYSE.quot;

ICICI plans to raise a total of Rs 2,165 crore through a combination of a domestic public equity offering, a preferential equity issue to local institutional shareholders and an international offering. It has set a price of Rs 73 per share for the preferential issue and the public offer.

quot;The ADR issue and the listing on NYSE will be completed only after all necessary formalities have been complied with,quot; she said.

quot;ICICI intends to offer existing GDR holdersthe right to exchange GDRs for ADRs. Following the exchange offer, ICICI does not intend to maintain its listing on the London Stock Exchange for the GDRs,quot; ICICI added.

Asked about approvals from United States8217; Securities Exchange Commission for the ADR issue, she said 8220;final things are coming in.8221; The domestic offering comprises simultaneous allotment of preference shares to three principal shareholders 8211; Life Insurance Corporation, General Insurance Corporation and its subsidiaries and Unit Trust of India, and a public issue at a price of Rs 73 per share to mobilise Rs 500 crore and Rs 275.21 crore, respectively.

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Subsequent to the domestic issue, the stake of public financial institutions in ICICI would go down to 31.88 per cent from the existing 34.22 per cent. The largest stakeholders among the FIs are Unit Trust of India 7.2 per cent, Life Insurance Corporation 12.67 per cent and GIC and its subsidiaries 10.01 per cent.

The share of the GDR holders would come down to 17.33 per cent fromthe present 18.60 per cent, while the Indian public8217;s share would go up from 17.67 per cent now to 23.29 per cent. While the offer is for an amount of Rs 275.21 crore, the FI has the right to retain upto 10 per cent of the amount in the event of oversubscription.