ICICI Bank - Shareholding Details after FPO

Post its Rs 17,500-crore follow on issue, Temasek has maintained its stake in ICICI Bank while a host of existing investors, including Government of Singapore Investment Corporation (GIC), have seen their percentage shareholding fall. ICICI Bank, which will further raise Rs 2,625 crore as a green shoe option, is planning a $1.5-billion debt mop-up from the international loan market this year.

Institutions like Temasek and LIC, which had put in around $2 billion bids each, were among the biggest investors in the bank’s recent domestic issue. However, Temasek had put in an application in the ADR issue too. Before the fresh issue, Temasek, through Allamanda Investments, had a 7.37% stake.

Post-the fresh issue, Temasek’s stake continues to remain the same while that of GIC has fallen to below 2% from 2.18%. Temasek can now increase its stake up to 10% while GIC can, in the short term, increase its stake to 5%. GIC will have to get the ICICI Bank board approval, as also RBI approval, to increase the stake from 5% to 10%.

The stake of government-controlled institutions in the bank has fallen to below 10% from 12.11%. LIC’s stake, which was at 7.63%, has fallen to around 6.5%. The stake of General Insurance Corporation and other government owned insurance companies has fallen to around 2-2.5% from 3.86% now.

Even though many of the institutions had put in large bids, none of them were able to get any substantial stake because of oversubscription. The local issue was subscribed 11.5 times, with the qualified institutional buyers category subscribed 21.6 times, non institutional investors subscribed 6.1 times and retail individual investors subscribed 1 time. Another major shareholder, Bajaj Auto, which had a 4.06% stake, has seen a dilution to around 3.5%.

The new foreign stakeholders in ICICI Bank — investment arms of the Government of Dubai and Qatar — will now have stakes of less than 1%. This is the first time that these Middle East government arms are picking up stakes in the banking sector in the country.

A host of other foreign players like Warburg Pincus have also picked up stake. Out of the Rs 8,750 crore local issuance, around 40% was in partly paid shares. Many retail and some HNI customers have used the partly paid shares option. The 5.8 crore fully paid shares were permitted to be traded in the exchanges on Friday.

ICICI Bank is also in the process of raising $1.5 billion through the loan market. Banks are allowed to raise 25% of Tier I capital from the overseas loan market.

Last year, it had raised $1.7 billion from the loan market and $3.7 billion from the bonds market. The bank is likely to largely raise the loans from the yen market. According to Sudhir Dole, SGM, ICICI Bank, “We have used the options of MTN, 144 A (for the US markets) and loans. We will raise money depending on the requirement of our overseas branches.”

The bank had priced its FPO at Rs 940 per share and for retail shareholders, there was a Rs 50 discount. The bank’s American Depositary Share (ADS) offering was priced at $49.25 per ADS.