InvestorQ : For what has ICICI Bank raised Rs.15,000 crore via the QIP route?
Neelam Naik made post

For what has ICICI Bank raised Rs.15,000 crore via the QIP route?

Anu Biswas answered.
12 months ago

ICICI Bank completed the allotment of equity shares under its qualified institutional placement or QIP allocation scheme to raise a sum of Rs.15,000 crore. This is part of the aggressive fund raising plan of ICICI Bank during the year to address post COVID risks.

ICICI expects that the capital boost would be instrumental in creating a war chest to play growth in the post-COVID scenario and also to use the funds as a buffer once the EMI moratorium was lifted by the RBI post August this year.

Institutional investors were allocated a total of 41.89 crore shares at an issue price of Rs.358 per share. The issue price actually represents a 1.9% premium to the floor price of the issue. However, the price represented a small discount to the market price of the stock.

The QIP placement will be dilutive because as a result of the allotment of shares the paid-up equity share capital of the bank will increase from 647.64 crore equity shares of face value Rs.2 each to 689.54 equity shares post the completion of the QIP allotment.

More than 11% of the QIP issue was picked up by the Monetary Authority of Singapore, which is already a major investor in ICICI Bank. Other marquee investors in ICICI Bank QIP issue include Morgan Stanley Global Opportunity Fund and Societe Generale.