ICICI Bank's Public issue opened today 01/12/2005. There were applications only for 43% of the total value. Other issues recently completed book building with in couple of hours of their opening . Classic example being ONGC issue. ICICI is trading at Rs 540 today. The offer is 505 to 550. There is hardly any scope for any gain on opening up of new shares for sale. You can as well pick shares in the market at Rs 10 less . No bothering of any allotment or not. You get confirmed stock. This may well turn out to be a big bouncer in the market in a few weeks time. There is no incentive to apply for the public issue. Ridiculous. I will not be surprised if the prices slide to 400 levels in a years time.
By the way what is ICICI going to do with these funds. Just to bring in Tier I capital - to fulfill capital adequacy norms of RBI. Nothing more. Targeting to grow like State Bank of India is foolish. SBI took more than a century to what it is today. Its strengths are totally different. ICICI can never match SBI even after a 100 years.
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