New Delhi: SBI has put in a USD 1.3 billion bid for the ICICI Bank FPO (issue, which has closed Friday). Other bidders include Temasek, LIC and Warburg Pincus. KV Kamath, CEO and MD, ICICI Bank feels that the ADR will be subscribed well over 10 times and would be spread in three main geographies - the US, Europe; predominantly UK and East which is Singapore.
He further added that including the green shoe option, the bank was looking at roughly USD 5 billion, half of which, will be through the ADR route. He said that as of now it was over subscribed multiple times.
Excerpts from CNBC-TV18's exclusive interview with KV Kamath:
Q: What kind of response did you have to the ADR issue?
A: I think it will be subscribed well over 10 times overall issue. Geographic spread, I think would be even, as in the past we have three main geographies which have supported us - the US, Europe; predominantly UK and East which is Singapore, I think more or less the distribution will be the same.
Q: Have you got an idea of how much the ADR itself has brought in? if you use the green shoe, what is the kind of money you are looking at that will be a part of your capital in a couple of days?
A: I think we had said that including the green shoe option, we will look at roughly USD 5 billion and that is the amount that will come in; half of that will be through the ADR route and I think that as of now that is multiple times over subscribed.
Q: There was a predictable problem perhaps with the retail subscription, has it been one time or maybe you have missed it by a hairs’ breath?
A: I don’t think we would miss it by a hairs’ breath; I think we are still counting. Purposely I had set the bar very high for our team. We had set a bar of something like Rs 3,500 crore and that includes several issues put together, if I can put it into context just for the retail subscriber; and the latest reports are that we will make it.
Q: Why at all go through this any QIP (qualified Indian person) would have lapped up your issue, why go to the retail at all?
A: I thought there is a need to reach out to the retail investor. We are a bank with over half a million subscribers and I thought one more push to try to get in half of a million of applicants would be worth our while; so the extra push was for that reason.
Q: We understand that SBI has put in nearly Rs 5,000 crore in terms of applying for your shares, even if it is 1:10, if they are ten times oversubscribed; this will take away some 500 crore of shares, any comments?
A: I would say the way banking sector looks as each other system is reflected in support that SBI has given to us. To me, this is a sign that all of us are coming off age, ourselves included because it is only by looking at each others success and trying to build on that success that each one of us will achieve our own objectives. I thank them for their support and confidence they have vested in us.
With inputs from moneycontrol.com
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