ICICI Securities had priced its initial public offer in a tight price band of Rs 519 to Rs 520 per equity share.
The initial public offering (IPO) of ICICI Securities, the stock broking arm of ICICI Bank, got a tepid response and its non-anchor portion was subscribed 0.78 times on Monday, the final day of the offer, with investors bidding for 3.46 shares against 4.42 crore shares reserved for them.
Qualified institutional buyers bid for 1.04 times the shares offered to them, high net worth individuals bid for 0.36 times their allocation, retail investors 0.88 times and shareholders 0.34 times.
ICICI Securities had priced its initial public offer in a tight price band of Rs 519 to Rs 520 per equity share. The 100% offer-for-sale constituted 23.98% of the post-offer paid-up capital of the company. ICICI Securities’ services include brokerage, financial product distribution, and investment banking. The company focuses on both retail and institutional clients. According to a Crisil report, ICICI Securities has been the largest equity broker in India since FY 2014 by brokerage revenue and active customers in equities on the National Stock Exchange.
The retail segment accounted for 90.5% of the revenue of its brokerage business in FY 17. As of December 31, 2017, ICICIdirect, the company’s proprietary electronic brokerage platform, had approximately 3.9 million operational accounts of which 0.8 million had traded on NSE in the preceding 12 months.