The shares of ICICI Bank drops 1% after raising Rs 4,000 crore to support growth

4 Oct 2023 , 01:58 PM

On October 4, after the private sector lender raised Rs 4,000 crore through long-term notes, ICICI Bank shares dropped more than 1%. According to ICICI Bank, in a regulatory filing, the institution distributed 4,000 senior unsecured redeemable long-term notes in the form of non-convertible debentures of Rs 4,000 crore.

These bonds are unsecured, which means they are not backed by any real property, but because they are redeemable, the bank is required to return the principal to the bondholders at maturity. At the end of ten years, on October 3, 2033, the bonds may be redeemed. The bonds are not associated with any unique benefits or rights, according to the bank.

The institution stated in its regulatory filing that the bonds were issued at par and had an annual yield of 7.57 percent that is payable. They would be listed in the appropriate NSE section.

Bond sales are a component of ICICI Bank’s efforts to increase its capital base and diversify its funding sources. Investors can buy and sell these bonds on the secondary market thanks to their NSE listing.

ICICI Bank decreased by more than 1% to settle at Rs. 939.85 on NSE in the previous session. The stock has increased by about 4% so far this year and by 8% over the past 12 months. The relative strength index (RSI) for the stock is 37.3, indicating that it is neither overbought nor oversold.

The price of ICICI Bank stock is trading above its 200-day moving average but below its five, ten, twenty, fifty, and hundred-day moving averages. According to statistics from Trendlyne, its 1-year Beta value is 0.94, indicating a low level of volatility.

For feedback and suggestions, write to us at [e-mail]