ICICI Bank share price gained in early trade on Wednesday after the company approved to sell up to 2.21% stake in brokerage arm ICICI Securities through an offer for sale.
ICICI Bank, the promoter of the company, held a 77.22% stake in ICICI Securities as of September 30, 2020. "The board of directors of the bank, at its meeting held today, approved the sale of up to 7,121,403 equity shares of the face value of Rs 5 each of ICICI Securities representing up to 2.21% 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.
ICICI Bank shares opened higher and touched the day's high of Rs 513.60. Later, the shares erased early gains to hit Rs 506.10, its day's low on BSE. ICICI Bank shares closed lower by 0.42% at Rs 508.50 apiece on BSE on Tuesday's session. The share touched its 52-week high Rs 552.40 and 52-week low Rs 269.4. ICICI Bank stock price has fallen 0.59% in the last 2 days of fall.
Shares of ICICI Securities, on the other hand, gained 2.63% to hit an intraday high of Rs 473, after opening at Rs 458. ICICI Securities scrip closed 1.36% higher at Rs 460.90 apiece yesterday. The share touched its 52-week high at Rs 568.75 and 52-week low at Rs 203.60. ICICI Securities stock has risen 4.39% in the last 3 days.
The share sale process is happening towards compliance with the requirement of the minimum public float of the company, said the private sector lender. At the floor price of Rs 440 per share, ICICI Bank OFS will be carried out on December 9 and 10. The lender will be able to raise at least Rs 313.34 crore by offloading a stake in its subsidiary.
ICICI Securities said in a separate filing, that ICICI Bank's 2.21% share sale will kick-start on December 9, 2020, for non-retail participants only. 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 stock exchanges are required to ensure that the floor price is immediately informed to the market," ICICI Securities added in its filing.