ICICI Bank goes for 1:5 stock split

ICICI Bank, the country’s largest private-sector lender, on Tuesday announced that its board had approved the splitting of each equity share into five. 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 (ADS) 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.

ICICI Bank