ICICI Securities has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) to raise about Rs 3,000 crore. The issue constitutes a public offer of up to 6.44 crore equity shares of face value of Rs 5 each, representing about 20% of the company’s equity capital. The offer has a proposed reservation of up to 32.21 lakh equity shares for individual investors, Hindu Undivided Families (HUFs) and shareholders of ICICI Bank. Citigroup Global Markets, Bank of America Merrill Lynch (BoAML), CLSA, IIFL Holdings and Edelweiss Financial Services are bankers to the issue. The board of directors of ICICI Bank had on November 7 had approved the sale of a part of its shareholding in ICICI Securities.
ICICI Bank is preparing to sell shares of its brokerage arm after listing its general insurance and life insurance companies. ICICI Bank’s share has given 30.75% returns Y-T-D and ICICI Prudential Life Insurance Company has given 19.63% returns Y-T-D. While its recently-listed subsidiary, ICICI Lombard General Insurance Company,that got listed in September this year, has returned 19.63%. ICICI Securities offers investment banking, institutional broking, retail broking and private wealth management services. Motilal Oswal Financial Services, Edelweiss Financial Services and IIFL Holdings are among the prominent listed brokerage companies in India.