This is the first time ICICI Bank has gone for a share split.
“The board has considered and approved the sub-division (split) of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each,” the bank said in a statement.
Though ICICI Bank did not give a reason for the stock split, companies usually split their stocks to keep prices attractive for retail investors.
The lender added each American Depository Share of ICICI Bank would continue to represent two underlying equity shares, like at present.
And, the number of ADSes held by an American Depository Receipt holder would, as a result, increase in the same proportion as the increase in the number of equity shares.
Typically, banks sub-divide their shares to improve the stock’s liquidity on the exchanges.
The lender would seek shareholder’s approval for this stock split and record the date for sub-division of shares after that.
On Tuesday, the lender’s shares fell 1.31 per cent from their previous close on BSE to end at Rs 1,547.70 apiece.
Earlier this year, J&K Bank had also announced a sub-division of its share in the ratio of 1:10.
Axis Bank had also done so earlier.
Experts said many companies chose to go for stock splits when
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