For long term retail individual investors who are willing to hold the stock, here is how you can bid for the ICICI Bank Follow On Public Offering.
Payment option I (Part payment)
- Retail bidders: Rs. 250 per Equity Share on application. Rs. 250 on allotment and the balance on call to be made within six months of allotment.
- The retail client can maximum bid for 114 x Rs. 885 = 1,00,890 wherein he will have to pay 114 x Rs. 250 = 28,500/-.
- At lower side, client can bid for 108 x Rs. 950 = 1,02,600 wherein he will have to pay 108 x Rs. 250 = 27,000/-
In case a client applies for first bid of 114 shares and second bid for 108 shares cheque amount would be for 114 x 250 = 28,500 i.e the maximum no of shares x Rs 250.
Payment option II (Full payment)
- Retail customer can bid for maximum 114 shares at bid amount of Rs. 885/- (lower price band), whereby bid value which will go in Exchange will be Rs. 1,00,890/- (114 x 885) and bank account will be debited for Rs. 95,190/- (114 x 835) [Rs 835 after considering discount of Rs. 50].
- Further, retail client can bid for 108 shares at bid amount of Rs. 950/- (upper price band) whereby bid value which will go in Exchange will be Rs. 1,02,600/- (108 x 950) and bank account will be debited for Rs. 97,200/- (108 x 900) [Rs 900 after considering discount of Rs. 50].
ICICI creates confusion on bidding process and we have to clarify it for our readers.
