Mumbai, Sept 23: A few hours after making a grand debut on the NYSE, the ICICI ADS triggered a rally in the GDR market and the underlying stock on the domestic bourses. At 1200 GMT, the ICICI GDR was up 9.84 per cent to $12, while back home, the stock galloped to hit the upper end of the circuit at Rs 93.20 on the BSE with a volume of 16.47 lakh shares. The stock opened with a huge gap at Rs 89.90 against its previous close of Rs 80. The stock was on upper circuit on the NSE too, closing at Rs 92.75.On the NYSE, the ADS opened strong at $11.875 on Thursday while some deals were also reported at $12 at the time of going to the press. On Wednesday, the ADS was listed at a 12 per cent premium at $11 against the offer price of $9.8. The ADS ended the first day of trading at $11.20 after hovering in a range of $10.75-11.25. The counter saw 4 million ADS being traded which represents 20 million ordinary shares (one ADS is equal to 5 shares). The ICICI ADS issue was oversubscribed 5.8 times with $1.6 billion worth of orders against an issue size of $275 million.
"That there is a tremendous appetite for Indian paper is reflected by the response to the ICICI ADS issue. The domestic price will now track the ADS price. The price should firm up further as, according to initial estimates, retail investors have cornered a large chunk of ADS. Now, demand will come from institutional investors," said an analyst with a domestic brokerage.
"As the economy is showing signs of picking up, the business of ICICI will also grow and add to its bottomline," added another analyst.
The Wednesday's closing price of ADS at $11.20 translates into a domestic price of Rs 97.44 per share. This is at a small premium of 4.54 per cent to the BSE closing price of Rs 93.20. The premium is slightly above 5 per cent if one takes into account the NSE closing price.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.