New Delhi: India's largest private sector bank ICICI is all set to float it’s follow-on public offer (FPO) by next week. Though the lukewarm response received by another mega issue DLF IPO has raised concerns about the investors’ interest in the banking shares.
ICICI Bank will set a price band on June 18 and start selling shares the following day. The offer will close on June 22, with the final pricing set on June 23. While the exact price band will be announced on Monday, the markets are expecting it to be in a range of Rs 850-875.
It will raise over Rs 20,000 crore both from the domestic and overseas markets making it one of the largest public issues in recent times. ICICI hopes to use the proceeds to fund lending to the retail, corporate and infrastructure sectors in the Asia's third-largest economy, India.
KV Kamath is known as the most aggressive banker in banking circles and ICICI's mega follow on public issue only reinforces that image.
Ketan Karani, VP Research of Kotak Securities told CNBC-TV 18 that issue looks attractive in terms of short-term gains and that small individual investors can buy ICICI Bank shares post issue.
Karani told CNBC-TV18, “It would be fair for the person to buy ICICI Bank post the announcement of the pricing for the issue is announced. As we believe that once the issue comes if you look at the internals of ICICI it will be more prudent to buy after the issue because we believe there could be some short-term correction in the price of ICICI Bank."