India-based private sector lender ICICI Bank is reportedly considering raking in as much as INR226.8bn ($3bn) via share sale, Bloomberg has reported citing people familiar with the matter.
The lender seeks to raise capital to expand its lending business.
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The Mumbai-based bank eyes the share sale offering by September 2020, the report added.
The actual timing of the launch will be subject to the market conditions during that time.
Currently, ICICI Bank is looking to begin talks with potential advisers for the share sale offer.
Since the share sale considerations are still at an early stage, the details of the offerings may change over time, said Bloomberg.
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By GlobalDataICICI Bank’s shares fell as much as 8.3% after the details regarding the share sale were shared.
ICICI Bank will be the latest lender in the country to join its peers for fundraising as banks are facing a major cash crunch due to the impact of the Covid-19 pandemic.
According to a report published by Credit Suisse, Indian banks will need to raise as much as $20bn by next year, of which, the state-run banks would need $13bn to recapitalise.
Last week, ICICI Bank raised nearly INR31bn ($409m) by offloading 3.96 % stake in ICICI Lombard General Insurance Company and ICICI Prudential Life Insurance, according to exchange filings.
As of 31 March 2020, the bank recorded a capital adequacy ratio of 16.1%.
