ICICI Bank to sell 2.21% stake in brokerage arm; sets floor price at Rs 440

ICICI Bank on Tuesday said it will sell up to 2.21 per cent stake in brokerage arm ICICI Securities through an offer for sale.

The floor price for the sale to be starting from Wednesday has been fixed at Rs 440 apiece, which may fetch the bank at least Rs 313 crore.

"The board of directors of the bank, at its meeting held today, approved the sale of up to 7,121,403 equity shares of face value of Rs 5 each of ICICI Securities representing up to 2.21 per cent of its issued and paid-up equity share capital, through an offer for sale through stock exchange mechanism," ICICI Bank said in a regulatory filing.

At the floor price of Rs 440 per share, ICICI Bank will be able to raise at least Rs 313.34 crore by off-loading stake in its subsidiary.

The share sale process is happening towards compliance with the requirement of minimum public float of the company, said the private sector lender.

In a separate filing, ICICI Securities said that ICICI Bank proposes to sell up to 2.21 per cent shares. The sale will kick-start on December 9, 2020 with the non-retail investors only participants.

On December 10, the sale will take place for retail investors and for those non-retail investors who choose to carry forward their un-allotted bids.

"The floor price for the sale shall be Rs 440 per share. The stock exchanges are required to ensure that the floor price is immediately informed to the market," ICICI Securities said in the filing.

ICICI Bank, the promoter of the company, held 77.22 per cent stake in ICICI Securities as of September 30, 2020.

In accordance with the minimum public float requirement, once a company is listed, its promoters are required to bring down their shareholding down to 75 per cent within the stipulated minimum shareholding period so as to meet minimum public float of 25 per cent.

ICICI Bank shares closed down by 0.42 per cent at Rs 508.50 apiece on BSE. ICICI Securities scrip closed 1.36 per cent up at Rs 460.90 apiece.