ICICI board clears $400 mn ADR issue

The board of ICICI Bank has approved the proposal for sponsoring an issue of American Depository Receipts (ADR) aggregating $400 million. Th...

The board of ICICI Bank has approved the proposal for sponsoring an issue of American Depository Receipts (ADR) aggregating $400 million. This is the third sponsored ADR issue by an Indian company after Infosys and Satyam.

ADRs will be issued against equity shares held by its Indian shareholders and listed on Indian stock exchanges. The money thus raised will come to the Indian shareholders and not to the company. Infosys had earlier announced a $ one sponsored ADR issue.

The size of the issue would be up to a

maximum of 6 per cent of the bank’s paid-up equity share capital, subject to compliance with applicable regulations governing sponsored ADR issuance by Indian companies and foreign ownership in Indian private sector banks, the bank said.

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The bank has informed that it will now call for an extraordinary general meeting (EGM) to seek shareholder approval for the purpose. It may be recalled that the bank had announced its intention of going for an ADR on December 6.

Currently, the bank’s combined FII and FDI holding has reached 71 per cent against a maximum permissible limit of 74 per cent. The bank’s existing ADR holding is around 22 per cent. On Monday, the ICICI Bank stock closed at Rs 360.30 at the BSE, up 0.17 per cent from its previous close.