ICICI Bank Board To Discuss Fundraising Proposal On July 8
The board of ICICI Bank Ltd. will meet on Wednesday to discuss a fundraising proposal, involving issuance of equity shares. The move is part of the private lender’s plan to strengthen its financial position.
The capital raising plan is in line with ICICI Bank’s May 9 announcement wherein the lender said it will be looking to strengthen the balance sheet as opportunities arise.
In June, ICICI Bank sold 1.5% stake in its life insurance subsidiary for Rs 840 crore. Prior to this, the lender had informed about a 4% stake sale in its general insurance subsidiary for Rs 2,250 crore.
"A meeting of the Board of Directors of the bank will be held on Wednesday, July 8, 2020, to discuss and consider the proposal of raising funds by issue of equity shares and/or other equity linked securities," ICIC Bank said in a regulatory filing on Sunday.
The issuance of shares will be inclusive of but not limited to a private placement, preferential issue, qualified institutions placement, further public offer or any combination thereof, it said.
The fundraising proposal is subject to shareholders' approval as well as regulatory and other approvals, as may be required. The notification, however, did not spell out any targeted amount on the capital to be raised.
As on March 31, ICICI Bank's overall capital adequacy stood at 16.11%, with the core Tier-I ratio at 14.72%. On Friday, the company’s shares fell 0.47% to end the day at Rs 361.00 apiece while the benchmark Sensex gained 0.50% to end the day at 36,021.42 points.