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ICICI Bank stock rises 3% on plan to raise funds through debt route

Aseem Thapliyal     May 5, 2020

ICICI Bank share price gained in early trade today after the private sector lender said it would consider raising of funds via debt route in its board meeting to be held on May 9. Share price of ICICI Bank gained 2.97% to Rs 348.3 compared to the previous close of Rs 338.25 on BSE.

The stock opened opened with a gain of 2.88% at Rs 348 today. ICICI Bank stock is trading higher than 20 day moving averages but lower than 5 day, 50 day, 100 day and 200 day moving averages. The stock has gained nearly 19% in last one month.  Total 10.42 lakh shares changed hands amounting to turnover of Rs 35.48 crore on BSE.

The stock hit its 52 week high of Rs 552.4 on December 30, 2019. The stock touched its 52-week low of Rs 269 on March 14, 2020. The large cap stock has fallen 15.34% during the last one year and declined 36.85% since the beginning of this year.

43 of 45 brokerages rate the stock "buy" or 'outperform' and two "hold", according to analysts' recommendations tracked by Reuters.

"The Board of the Bank at its meeting scheduled on May 9, 2020 will also consider, inter-alia, the following:"fund raising by way of issuance of debt securities including non-convertible debentures/bonds/notes/offshore Certificate of Deposits in single/multiple tranches in any currency through public/private place," the lender said in a communication to BSE.

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On April 21, ICICI Bank share closed lower amid reports that the lender has $100 mn exposure to  Singapore-based oil trading firm Hin Leon Trading Pte which has filed for bankruptcy in that country. ICICI Bank share price ended 8.28% or 30 points lower at Rs 331.55 compared to the previous close of Rs 361.50 on BSE.

The bank has lent $100 million to Ocean Tankers, a unit of Singapore oil-trading firm,  of which $75 million is secured through investory, according to a report by S&P owned Platts agency.

"Hin Leong and its sister company Ocean Tankers, which owns more than 100 cargo ships, have both filed for bankrutpcy on Friday which will give 30 days to restructure debt. Hin Leong founded by Chinese billionaire Lim Oon Kuin has total debt of close to $4 billion which will have to bw restructured," the report said.

Later, the lender in a communication to BSE confirmed having exposure to the company.

"We confirm that the Bank, in the normal course of its business, has exposure to the borrower group in question, and is taking due steps to protect its interests, and will appropriately reflect the same in its financial statements, as it would do in respect of all its banking exposures," it said in a statement.

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