Domestic Part of ICICI IPO More Than Two Times Oversubscribed

The domestic portion of ICICI Bank's initial public offering received an overwhelming response today from investors hoping the bank will benefit from India's surging economy and was more than two times oversubscribed.

The country's largest private sector bank is raising up to 100.62 billion rupees from the domestic market, and a similar amount through an issue of American Depositary Shares.

The bank will use the money to expand international and rural banking and offer more loans to consumers.

The offer, through a 100 pct book-building route, was oversubscribed by 2.7 times, according to data released by the National Stock Exchange. So far, the bank has received nearly 266 million bids for 98.8 million shares.

The bank has set an indicated price band of 885 to 950 rupees a share.

Retail investors will get a 50 rupees discount to the final price that will be fixed by the bank. The domestic offering will close on June 22.

The issue is being lead managed by Goldman Sachs (India) Securities, DSP Merrill Lynch, Enam Financial Consultants and JM Financial Consultants.