The second largest bank in India, ICICI bank would be raising 20,000 crores in the month of June. The bank would be raising 15,000 crore through public issue and the rest of the money through ADR issue. In India this is the biggest ever fund raising plan by any Indian bank. It is also opting for a greenshoe option which could double the net worth of the bank to Rs 24,313. As a result its paid up equity would rise by around twenty percent depending upon the share of the bank.
K V Kamath, managing director and CEO, ICICU Bank stated:
We have to look at India in the context of the existing investment pipeline of $500 million over the next three years. We would see doubling of the infrastructure and manufacturing capacity and we have to prepare ourselves for the future.
The money collected would be used for supporting credit growth for the next three years and this is for the third time that bank will be raising money. Lat time it was in October 2005 when the bank had raised 8,000 crores through a combination of domestic and ADR issues.
Via: business standard
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This is one of the biggest measures of fund-raising by any Indian bank. Other banks in India might also follow suit#postcomment