ICICI Stake Sale In Subsidiary Fails To Obtain Govt. Nod

ICICI BankICICI Bank was trading flat at Rs 947.55 as its plan to sell a 5.9 per cent stake in a subsidiary has failed to obtain the government's nod.

During the day, the scrip touched a high of Rs 960 and a low of Rs 940. The current market price of Rs 947.55 brushes off its FY 2007 EPS of Rs 30.7, by a PE multiple of 30.86.

Today, 2.11 lakh shares were traded on the counter. During the past one quarter, the average daily volume in the stock was 3.15 lakh shares on BSE.

ICICI Financial Services hold up 74% each of ICICI Prudential Life Insurance and ICICI Lombard General Insurance. It also possesses 51% each of ICICI Prudential Asset Management and in ICICI Prudential Trust.

According to ICICI Financial Services, “ICICI Bank has been given to understand that its application has not been approved.”

ICICI Bank said it had not yet got an approval from the Foreign Investment Promotion Board, but added the transaction would be finished if the sanction failed to materialize within a mutually agreed time.

In the meantime, ICICI Bank valued its Rs 8,750 crore public issue at Rs 940 a share before market hours today. The issue has a green shoe option of Rs 1,312.5 crore. The issue was subscribed 11.5 times with the qualified institutional buyers group subscribed 21.6 times. The issue was open from 19 June 2007 to 22 June 2007.

ICICI Bank’s net earnings climbed 4.45% to Rs 825.12 crore in its fourth quarter ended 31 March 2007, as compared to Rs 789.93 crore in Q4 March 2006. Total operating income soared 54.3% to Rs 8495.52 crore Q4 March 2007 as against Rs 5507.45 crore in Q4 March 2006.