15 Jun 07 ICICI Bank Public Issue : Use the Part Payment Option
ICICI Bank will be offering part payment option for retail investors applying in its follow on public issue (FPO). Unlike the DLF IPO, ICICI Bank will be listing its partly paid shares along with the fully paid shares (which are already listed and traded on NSE and BSE). This sounds interesting to me. So unlike the DLF IPO retail investors don’t have to think twice before going for the part payment option in the ICICI Bank public issue. During a coversation with a friend, I was told that there is a catch in using the part payment option. According to him, since only retail investors would have partly paid shares and most of them would like to sell them on listing, there would be higher selling pressure here than in the fully paid up category. However there is a flaw in this logic. If the same asset class trades at two different valuations, then there is an arbitrage opportunity and hence arbitrageurs will enter the picture. This will make sure that the price difference between the partly paid ICICI Bank shares and the fully paid ICICI Bank shares is negligible. Hence retail investors can safely use the part payment option for applying in ICICI’s public issue. This is the third time ICICI Bank is raising funds through a public issue. Given below are a list of features which make the ICICI Bank public issue very attractive.
- Upto 5% discount to the FPO issue price (only for retail investors)
- Part Payment Option (only for retail investors)
- Green Shoe Option
- 5% Reservation to existing shareholders (record date June 13th)
ICICI Bank Public Issue Price Band : ICICI Bank has fixed the price band for its public issue between Rs. 885 and Rs. 950 which I must admit is on the higher side. But the good news is that Retail Investors will get a discount of Rs. 50 per share on the Issue Price fixed by ICICI Bank.
ICICI Bank Public Issue Payment Options : ICICI Bank is offering two payment options for retail investors investing in its Public Issue. Under the first option retail investors need to pay Rs. 250 per share on application, Rs. 250 per share on allotment and the remaining amount on call. ICICI Bank reserves the right to call the balance amout any time within 6 months from the date of allotment. Under option 2 Retail investors should pay the full amount less the Rs. 50 discount offered to retail investors. Under the first option, I wonder if the ICICI public issue gets oversubscribed, ICICI Bank will adjust the application money and the call money and give us fully paid up shares. Any clarifications? Anyone?
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Questions?
Yes, a lot infact
. Infact the the part payment option is not clear to me. Can you please explain it a bit more. May be with some example. I am new to Share Market
Thanks
It ain’t clear to me either. I was asking if some reader could clarify
Usually, the part payment option involves paying a part of the amount while applying and the remaining at allotment. Refund would be adjusted against the remaining payment outstanding. But in the case of ICICI FPO, we also have payment on call. I’m unsure as to how this will work.
Hi sir,
This is my first mail to u.
I am little bit confused sir..
suppose as retail investor i apply for 6 shares of ICICI .using payment option 1 i wld be giving 1500(250*6).And suppose i get alloted 6 shares now the reaming amt(5700-1500)4200 if fixes issue price @950. i wld hav to pay later in 6 mths.?
and since Rs 50 disount to retail thn amt is 3900.if i m wrong pls correct?
and can i sell these shares on listing day?
Thanks
Ashish
Sharekhan website is showing a different picture. If you go for the part-payment option (250/-) , then you will be paying 9/- towards the face value and 241/- towards premium. So, does this mean stocks obtained by this option will have face value 9/- or just they are collecting 9/- now and later 1/- for the face value.
Also , Do you have any idea whether IPOs bought by this option will be available to the investor at the same time they will be available to those who opted for full payment option ?
Madhab
it may be icici banks ipo strategy to have full liquidity from the market. as bullishindian.com says LISTING PARTLY PAID SHARES IN MARKET is strange one. i dont know how it will work. but icici bank proves it innovation again. if it works, investors will be done more.
To Answer your question
“Under the first option, I wonder if the ICICI public issue gets oversubscribed, ICICI Bank will adjust the application money and the call money and give us fully paid up shares. Any clarifications? Anyone?”
Yes in case the issue get oversubscribed you may get fully paid up shares depending upon the level of oversubscription, Various scenarios for the same have been given in the Red Herring Prospectus filed with SEBI.
@ Abhinav – Thanks a lot for bringing this information to my notice. I think I missed reading that part in the RHP.
hi,
I have been allocated 48 shares through partial payment option. can you please suggest me how to pay the remaining amount to ICICI.
thanks in advance
sivakumar
Hi,
i have also been allocated 96 shares. Plz to shed some light on how to make the rest of the payment. Can it be done online? or do we have to go to a bank – and do we have to fill any form for it?
regards,
vijay
sir , if i had applied in public offer of icici retail group for fully paid 102 shares. how many shares will i get and at what price.i am out of city that is why i am calling you. in my previous enquiry the email i.d is not mentioned properly.
@Rajeev – You are likely to get close to full allotment at Rs. 890 per share.
Hey.. how can we pay the rest of the amount.
Can someone please throw some light over this.?
thanks
-Benny
Hi,
i have also been allocated 52 shares. Plz to shed some light on how to make the rest of the payment. Can it be done online? or do we have to go to a bank – and do we have to fill any form for it?
regards,
i have not got any communication from ICICI bank for part payment , stil i have to pay part payment how can i pay that?
Dear bhupen; it is too late. hoever you may consult icici baon e-mail id “investor @ iocici.com. they may accept your requestof balance amount alongwith interest @15% interest.
Dear bhupen; it is too late. hoever you may consult icici bank e-mail id “investor @ iocici.com. they may accept your requestof balance amount alongwith interest @15% interest.
What is the amount payable per share on the partly paid shares of ICICI bank as on 16th October 2007?
When should the third payment (of Rs.390/per share) be made. I have not received any communication so far.
In case of partly paid shares Payment Option 1 when whould there be third payement call which was supposed to be within six months? Any Ideas?? There has been no communcation so far on this front from ICICI/Karvy
hello,
Is there any possibility to receive a duplicate call notice. In the previous call notice (payment of Rs 250) I was able to get a duplicate call notice from Karvy’s website. Does anybody know from where to get a duplicate call notice this time ?
i want to know about fd, insurance,share market ,deposit on gold plans etc
hello,
Is there any possibility to receive a duplicate call notice. In the previous call notice (payment of Rs 250) I was able to get a duplicate call notice from Karvy’s website. Does anybody know from where to get a duplicate call notice this time ?
neil shah – if u got any info, plz let me know.
Sir,
I have taken 54 shares in ICICI bank FPO through part payment. what will be my buy date as per incometax rules and for my records. Please advise.
Regards,
Satya Prasad
Dear Sir,
I got 36 ICICI Bank IPO, I already paid 2 Instalments of Rs.18000/-.For 3rd instalment I could not got the payment call letter. Please tell me how I can pay the final payment. How much I have to pay. Kindly inform me immidiately.
my mail ID ramshassan@yahoo.co.in
regards,
H S Ramesh.
I have got alloted 102 shares of ICICI Partly paid shares in Jun/Aug 07 and I already paid 2 Instalments.For 3rd instalment I have not got the payment call letter. Please tell me how I can pay the final payment. How much I have to pay. Kindly inform me immidiately.Whom do I contact?Is it Karvy?ICICI bank ?
Regards Ramesh Muppavarapu
call notice no:-490409 folio no:-5043695 demat a/c no:-IN301645-10124699
I HAVE 6 PARTLY PAID EQUITY SHARE
NOW HOW MANY RS. DUE FOR CALL MONEY ?
AND LAST DATE FOR PAYMENT