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FIPB rejects ICICI Bank’s plea for up to 24% stake sale
The Foreign Investment Promotion Board, or FIPB, has rejected ICICI Bank’s request to allow it up to 24% stake sale of ICICI Holdings. From the foreign holding structure point of view, many subsidiaries which are part of ICICI Holdings, already have foreign investments in them.
The Foreign Investment Promotion Board, or FIPB, has rejected ICICI Bank's request to allow it up to 24% stake sale of ICICI Holdings. From the foreign holding structure point of view, many subsidiaries which are part of ICICI Holdings, already have foreign investments in them.
But ICICI Bank may appeal to the FIPB and make their representation to them, explaining why they should be allowed.
ICICI Bank has priced its follow on public offer, or FPO, at Rs 940 per share and ADRs at $49.25 per ADS.
Retail investors fully subscribed the ICICI FPO nearly one time. Most of the retail investors opted for Rs 250 option, which means they pay Rs 250 for application and Rs 250 on allocation and the remaining within six months.
Surprisingly, HNIs' total subscription is at around 6.3 times. Azim Premji, Mukesh Ambani and Rahul Bajaj have put in Rs 1,000 crore bid each.
Meanwhile, KV Kamath, MD and CEO, ICICI Bank, has welcomed the SBI's investment in the ICICI issue.
Sources say for the participatory notes, or PNs, Citi & Merrill Lynch (ML) P-notes, Temasek and LIC have put in bids worth $2 billion each. The State Bank of India , or SBI, has the highest bid of $1.35 billion and Warburg Pincus has put in a bid of $993 million. All the investments via the PNs are at Rs 950 per share.
Kamath added that the bank would continue to focus on organic growth opportunities.
But ICICI Bank may appeal to the FIPB and make their representation to them, explaining why they should be allowed. 
