ICICI Bank announces QIP of equity shares, floor price @ Rs 351.36 per share

 

Private sector ICICI Bank on Monday announced a Qualified Institutional Placement for equity shares. The bank has set a minimum floor price of QIP at Rs 351.36 per share. The board of ICICI Bank will meet on August 14 to decide the issue price of QIP. ICICI Bank said in a stock exchange filing, 'The meeting of the Issues Committee of the Board of Directors of the bank has been held on Friday, 14 August 2020. This meeting has been held to determine the issue price of equity shares after considering each other.

 

ICICI Bank received Rs 3,036 crore in the exchequer in the June quarter after the sale of 3.96 per cent stake in ICICI Lombard General Insurance and 1.50 per cent stake in ICICI Prudential Life Insurance. Significantly, HDFC Bank recently set a floor price of Rs 1,838.94 per share for its QIP issue with an aim to raise Rs 14,000 crore.

 

What is QIB, let's first know about it, QIP or Qualified Institutional Placement is largely a fundraising tool for the Stock Market's listed companies. QIP is a process which was introduced by the Securities and Exchange Board of India (SEBI) so as to enable the stock market's listed companies to raise finance through the issue of securities for qualified institutional buyers (QIBs).

 

Earlier, since raising finance in the domestic market involved a lot of complications, Indian companies used to raise funds from foreign markets. So to intercept this SEBI introduced this facility so as to make the raising of funds easier in the domestic market.