ICICI Bank QIP raises ‘record’ US$2bn

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ICICI Bank qualified institutional placement AZB & Partners Cyril Amarchand Mangaldas Davis Polk Wardwell

AZB & Partners advised ICICI Bank when it recently raised ₹150 billion (US$2 billion) through a qualified institutional placement (QIP) of almost 419 million shares. Davis Polk Wardwell was international legal adviser to the 18 bookrunning lead managers, and Cyril Amarchand Mangaldas (CAM) was domestic legal adviser.

AZB & Partners’ team comprised partners Varoon Chandra and Agnik Bhattacharyya, and senior associates Rahul Aggarwal and Shivali Singh.

Bhattacharyya told India Business Law Journal the deal was “the biggest ever qualified institutions placement by a private sector bank in India”, and that it succeeded despite uncertain global markets and being priced at a premium.

Davis Polk Wardwell’s team was led by its New York-based partner Margaret Tahyar and Hong Kong-based partner Gerhard Radtke. Tahyar has a longstanding relationship with ICICI Bank and was its adviser when it listed on the New York Stock Exchange in 2000.

CAM’s team comprised partners Yash Ashar, Abhinav Kumar and S Vivek.

The three largest investors in the QIP, which opened on 10 August and closed on 14 August, were the Monetary Authority of Singapore, which picked up a little over 11% of the offering, Morgan Stanley Investment Management, which took 7.31%, and Societe Generale, which bought 5.55%.The bank intends to use the proceeds of the QIP for strengthening its capital adequacy ratio, improving its competitive positioning, and for general corporate requirements.

ICICI Bank’s QIP follows similar equity issues by HDFC, Axis Bank, Info Edge (India) and Alembic Pharma, which together raised ₹266 billion in a week.