ICICI and Yes Bank rise

Yesterday evening, the Board of ICICI Bank approved raising of funds for an amount aggregating up to Rs.15,000 crore.

This will be in one or more tranches, through private placement, preferential issue, QIPs, follow-on public offering or a combination thereof, subject to shareholders’ approval.

The Bank is doing what most other private sector banks have already done or announced plans to do - Axis Bank (to raise Rs.15k crore), Kotak Mahindra Bank (QIP – Rs.7700 crore), Federal Bank (to raise Rs.12k crore) and Yes Bank (Planned FPO for Rs.15,000 crore).

And in another development,

ICICI Bank stock opened almost 1.5% higher at Rs.373.80 and rose to an intraday high at Rs.376.05 and is currently just about holding on to the green at Rs.370, up less than 0.5%.

On the other hand, Yes Bank is going ahead with its fund raising plan - the bank has filed a red herring prospectus to raise up to Rs 15,000 crore through issuance of FPO. The offer will open on July 15, 2020 and close on July 17, 2020.

The market is happy with this progress and the stock rose almost 5.5% to an intraday high at Rs.27.50 and is currently trading at Rs.26 levels.