By the end of its second day, the follow-on public offer (FPO) from ICICI Bank received an enthusiastic response from investors, being oversubscribed 3.15 times for the 98.8 million shares on offer valued at Rs.10, 062.5 crore.

A portion of the 46.9 million shares allotted to Qualified Institutional bidders (QIB) received a wholehearted response being bid six times the offer, with foreign institutional investors (FIIs) tendering 19 crore applications and domestic financial institutions bidding for 9.09 crore shares.

5% of the shares were secured for existing retail shareholders who had fewer than 110 stocks of the bank before June 13, 2007, and all retail investors are entitled to a discount of Rs.50 through the book-building process.

Retail subscribers need to pay Rs.250 per share at the time of application, and another Rs.250 per share when the share is allotted. The balance payment would be made within six months after the allotment.

The discount to retail shareholders would be adjusted in the final call amount. As for non-institutional bidders, the payment would have to be made in two instalments - Rs. 250 on application, and the rest when the shares are allotted.

In the case of QIBs, 10% of the share bid is to be submitted on application, the margin amount once the allocation is confirmed, less Rs.250 per share, and the balance on the final allotment.

In the case of NRIs and foreign institutional investors (FIIs) who wish to subscribe for the partly paid shares, the Reserve Bank of India’s permission will have to be sought.

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