ICICI Bank Limited FPO Message Board (Page 25)

Hi all,
ICICI have always rewarded investors in IPO/FPO. Last time when it came with FPO two years back, it alloted shares at around 498 and the date shares arrived in demat account, rate in market was around 590-600. This time also same thing is to happen and rates in market will be around 980-1000. Look at activity in 950 futures of next month. Who is buying.

Hi Rajan

Anyhow, for retail customers the maximum price is Rs.900. So, still at profit. In a period of 6 to 8 months, the script will touch Rs.1300 to Rs.1500. There is also rumours that fully owned subsidiaries like Insurance and Financial Services will be demerged. For anyone who take long term view, this is good stock to have in kitty.

Hi Friends.

Todays begning rate for ICICI Bank was around 923. What is the pointing in bidding for 950 (leave alone discount)
I do not understand why apply at higherrate than the market rate We can as well purchase shares as much as we want at lower price than bidding rate and that too hopefully to get partial allottment. Will some of you explain why it is so?

M Rajan

Hello Guy,

There was a rumor that partly paid shares of ICICI will also get listed on same day? IS it so?? can someone please confirm

Valuation.... From Capital Market CM rating 51 (Very good as CM rating for Nitin Fire, Time Techno and MIC were around 46 to 48)

Pre-issue, ICICI Bank’s FY 2007 EPS and Book Value (BV) stand at Rs 34.6 and Rs 270.35, respectively. At the current price of Rs 917.85 (on 18 June 2007, the pre-IPO opening date), P/E and P/BV stand at 26.5 and 3.4, respectively. HDFC Bank’s and UTI Bank’s P/E and P/BV stand at 30.5, 5.4 and 26, 5.1, respectively.

The last three-month high/low and the average share price of works out to Rs 994.3, Rs 791.15 and Rs 890.14, respectively. The offer price band is Rs 885 to Rs 950. Naturally, without the Rs 50 discount, retail response would have been very poor. The ADR price of ICICI Bank closed at US$ 47.39 per ADR (representing two underlying shares) on NYSE, which is equivalent to Rs 970.78 per share at an exchange rate of one US$=Rs 40.97. The ADR issue price is likely to be at a premium to the domestic issue price.

At the upper and lower end of the price band of Rs 885 and Rs 950, ICICI Bank’s FY 2007 EPS on post-issue equity works out to 27.6 and 28. Post-issue BV stands at 394 and 400.

Given the tremendous growth potential in the Indian financial markets and its capacity to capitalise on it, ICICI Bank will remain one of the most fancied stocks of FIIs (current foreign holding is 71.57%). As long as global liquidity conditions remain favourable, there will be no dearth of FII buyers. How else can you explain the ICICI Bank scrip shooting up 74% since its last FPO in December 2005 compared with a 60% gain in the BSE 30-share Index, when the bank has managed only a 22% growth in net profit (compared with the Index companies’ aggregate growth of 31%) on 22% dilution of equity since its last FPO, effectively showing almost a flat growth in EPS.

Well if you should require any quantitative justification, there are two. BV jumped due to the premium collected in the last FPO. The bank issued shares at Rs 525 per share (at Rs 498.75 for retail investors) when the pre-issue book value was just Rs 185.41. Second is the recent unlocking of value of its insurance and asset management subsidiaries ( their value works out to Rs 495.92 per pre-issue share). After the present FPO too, BV will jump 46%-48% due to the huge premium. Besides boosting BV, the FPO funds will bolster the net interest margin (NIM) also as they will not carry any cost in the profit-and-loss (P&L) account and, possibly, the growth in net profit in FY 2008 could outstrip equity dilution of 24%-25%. For FIIs, post-issue P/BV of only 2.2- 2.4 would remain an attractive carrot.

Hi Hemant,

Thanks for your reply message. I'll try to re-consider my decision. Take care!!

ICICI Bank may demerge its Financial Services and Insurance subsidiaries soon. That may be the reason why QIB portion is oversubscribed by 4 times on Day1 for such a massive issue.

Dont apply for any FPO either ICICI or BEML. FPO only give loss to investor. Look at history of FPO. At the time of application it rates are increase in market. But at the time of listing there rates fall very fastly. Resulting loss to investors. Examples:- Rathi Udyog, PNB, Gulshan Sugar or any other FPO. Please tell which FPO has given profit recently.

Hello Arjun,

I have applied in this IPO a Capital Market Rating is 51.. and i treat CM ratings as benchmark for any IPO. I have applied in full and i think you should also go for it.. its just my advice after studying it.. take ur own decision.. Thanks

DONT APPLY FOR ICICI FPO. It price is when market is above 14000/- and increase of shares in market will let ICICI fall definately. It will BE AROUND 700/- in next 2 months.

this is great offer.

all must have sub.. this issue

i am gone to put 5 appli. on this issue

latest news mukesh abani has invest in icicibank issue 1000 cr

Hi Hemant,

I'm not going for this one.

Hi Tanu,

Yeah i agree with you but I am a small investor who cant hold money for long.. even though i have shares which were alloted to me in IPO.. but new buying at higher prices and keeping them on hold is not my cup of tea.. although i agree with u in longer run for these shares.. thats why i m still holding small quantity of these shares..

Thanks once again for your right advices and may god forgive for ur wrong once.. :).. Take care

capital market ranking 51.......go for it...... apply.......happy investing.............

anand and hemant.see nitin fire and mic electronics.what wre u saying before.seen these companies.they will give excellent returns to investors.whosover bought even on listing are making profits.
best buy now: cairn target 165-170 in short term
cinemax 200
dlf to have an excellent listing.premium gone up to 75 rs.
dlf has target of 1200 in 1 year.

hasubhai icici 12pm sudhima 1.96 bharai gayo chhe. icici bharavama vandho lagto nathi.

Opening Day @11am, overall 1.05 times subscribed?
I think great response.
It will destroy everyone's view in this form.

RETAIL INVESTORS PAY RS.50 LESS THAN PRICE PER SHARE , e.g. if the application at cut off price in full payment method, then the amount payable per share will be RS.900

investor's guide economic times mumbai has given it a 4 star rating out of 5.though mainly i do just d opposite of what it says about the issue

Rs. 885/- to Rs. 950/- Per Equity Share (Retail bidders discount: Rs 50 per share. Payment Method 1:
Retail Individual Bidders can pay Rs. 250 per share on application. The payment of the balance amount will be payable by the due date.

Payment Method 2:
Retail Individual Bidders can pay full application money while submitting the bid.

Discount for Retail Individual Bidders:
Retail bidders will be allotted shares at a discount of Rs 50 per share to the issue price determined through the book-building process. Under full payment method, retail bidders are required to pay the full bid amount less the discount, at the time of application