ICICI to focus more on M&A financing

ICICI Bank will shift its focus on global mergers and the acquisition financing with less than 25 per cent equity participation in the newly acquired companies.
Speaking to the media in Mumbai, ICICI Bank deputy managing director, Ms Chanda Kochhar said, “We initiated our investment banking services in the year 2004. We are shifting our prime focus across various life cycles of the corporates namely: lending services, private equity placements, IPO advisory services and global mergers and acquisition (M&A) financing etc.”
Ms Kochhar clarified that ICICI Bank has got no exposure to the subprime mortgage market in the US. “Although the Indian banks can invest in the subprime mortgage markets in the US, to the best of my knowledge, none of them currently have an exposure in these segment. We have got Rs 6,000 crores worth collateralised debt obligations on a balance sheet of over Rs 3,00,000 crores. ICICI Bank’s entire exposure is related only to India linked papers,” Ms Kochhar said.
ICICI Bank global investment banking group head Kalpesh Kikani said, “We have branded ourselves as a leading global bank of Indian origin that not only offers the M&A advisory services but also provides the financial solutions to the global acquisition processes. Ideally, our financing in mergers and acquisition deals is through the equity participation that allows us less than 25 per cent stake in the newly acquired companies. Also, we will focus on consolidation and the organic growth. Our overseas operations have broken even and amount to about 20 per cent of the consolidated revenues of ICICI Bank.”