X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
ICICI Bank plans US$125m ADR issue - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 25, 2000

    ICICI Bank plans US$125m ADR issue

    ICICI Bank has planned to tap the US stock market with an American Depository Receipt (ADR) issue of US$125 m (Rs 5.45 bn). Though the bank is keen on an ADR issue, they are also looking at other routes like a Global Depository Receipts issue to raise funds.

    ICICI Bank, a subsidiary of ICICI reported a turnover of Rs 6.3 bn as at March'99. Ina span of five years of operations its branch network has expanded to 55. Its capital adequacy ratio was 11.06% as at March'99.

    ICICI Banks' decision to raise funds stems from the fact that in order to expand and maintain their capital adequacy ratio they need to raise equity. Since the bank has been growing at a rate of 45% in the last nine months it will need fresh capital to meet the target of 9% capital adequacy by March' 2000. ICICI Bank has also announced its plans to issue equity in the domestic market and increase its current equity base of Rs 1.65 bn. It was expected to announce this offering along with a rights issue once they get the board's approval. However the final decision on the domestic issue depends on the ADR issue.

    ICICI Ltd will not partake in the rights issue and reduce its stake from the current 75% to eventually 40% as per the RBI guidelines. After the ADR issue alone ICICI stake will come down to around 60% levels.

    If this issue plans get finalised, ICICI Bank will be the first Indian Bank to raise funds through an ADR issue and if it taps the GDR market will be the first private sector Indian bank to do so. State Bank of India (SBI), India's largest public sector bank had tapped the GDR market in 1996 and raised US$ 369.95 m the largest amount raised till today by any Indian bank. The new private sector banks are expanding at a very fast pace and hence, to grow and maintain their capital adequacy ratios they require funds, which currently may not be met by internal generations. This issue could trigger confidence among other private sector banks to tap the international markets and we could see a spate of issues in the banking industry in the future.

    Market View:
    ICICI Bank has good growth prospects and is a technology savvy bank. Its on the "BUY" list of many analysts.

     

     

    Equitymaster requests your view! Post a comment on "ICICI Bank plans US$125m ADR issue". Click here!

      
     

    More Views on News

    ICICI Bank: Loan Slippages Trending Downwards (Quarterly Results Update - Detailed)

    Aug 10, 2017

    Asset quality will be the key thing to watch out for going forward.

    ICICI Bank: Provision Costs Up 5 Fold In First Half of FY17 (Quarterly Results Update - Detailed)

    Nov 18, 2016

    ICICI Bank declared the results for the second quarter of financial year ending March 2017 (2QFY17). The bank reported a flattish net interest income while net profits grew by 2.4%YoY in 2QFY17.

    IDFC Bank: Strong Trading Income Shields Credit Slowdown (Quarterly Results Update - Detailed)

    Aug 10, 2017

    IDFC Bank is taking steps to address contracting NIMs and successfully transition in to a retail bank.

    Axis Bank: Outside Watchlist Slippages a Big Worry (Quarterly Results Update - Detailed)

    Jul 31, 2017

    Almost 74% of the watchlist as provided by the bank of Rs 226 billion in FY16 has turned into non-performing assets.

    HDFC Bank: Asset Quality Deteriorates due to Farm Loan Waiver (Quarterly Results Update - Detailed)

    Jul 25, 2017

    Asset quality was under pressure on account of farm loan waivers. Despite the higher provisioning, the company reported a healthy profit growth of 20%.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    ICICI BANK SHARE PRICE


    Aug 17, 2017 (Close)

    TRACK ICICI BANK

    • Track your investment in ICICI BANK with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    ICICI BANK - DEUTSCHE BANK COMPARISON

    Compare Company With Charts

    COMPARE ICICI BANK WITH

    MARKET STATS