ICICI Securities Ltd IPO: ICICI group’s brokerage arm ICICI Securities Ltd’s IPO opened today for the subscription to raise up to Rs 4,017 crore. The IPO of ICICI Securities Ltd is the fourth public issue from ICICI group to date and third in last three years. ICICI Securities IPO constitutes 23.98% of the post-offer paid-up equity share capital in which 7.72 crore equity shares are being offered via the offer for sale route. The promoter ICICI Bank has successfully completed initial share sales of ICICI Lombard General Insurance and ICICI Prudential Life Insurance in 2017 and 2016 respectively.
We take a look at 15 details about ICICI Securities Ltd’s Rs 4,000 crore IPO that you can’t afford to miss before you go for the subscription
- ICICI Securities has expected to raise up to Rs 4,017 crore at the upper end of the price band of Rs 520. ICICI Securities has fixed a price band of Rs 519 to Rs 520 for its initial share sale. The promoter ICICI Bank will sell up to 7.72 crore equity shares of face value of Rs 5 through an offer for sale route in the IPO of ICICI Securities.
- Exactly half of the portion is blocked for subscription by the shareholders of ICICI Bank which is equal to 3.86 crore equity shares out of the total issue size 7.72 crore equity shares.
- Notably, ICICI Securities has allotted shares at a price of Rs 520 per equity shares to anchor investors, including The Nomura Trust, Tata Investment Corporation, Pioneer Investment, Reliance Capital, Aditya Birla Sun Life, Aranda Investments, DB International and Blackrock.
- As per the data available with stock exchange filing, ICICI Securities has finalised to allocate a little over 3.3 crore equity shares to 58 anchor investors amounting Rs 1,717.26 crore.
- ICICI Securities’ IPO will remain open from 22 March to 26 March 2018 in which investors can bid for a minimum of 28 equity shares and in multiples of 28 equity shares thereafter.
- ICICI Securities had appointed DSP Merrill Lynch Ltd, Citigroup Global Capital Markets India Pvt Ltd, CLSA India Pvt Ltd, Edelweiss Financial Services Ltd, IIFL Holdings Ltd and SBI Capital Markets Ltd as the book running lead managers to the issue while Karvy Computershare Pvt Ltd is the registrar to the issue.
- ICICI Securities is a technology-based securities firm that offers financial services such as brokerage, financial product distribution and investment banking with a focus on both retail and institutional clients.
- According to a CRISIL, ICICI Securities have been the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange.
- The Price/Earnings ratio based on consolidated diluted EPS (earnings per share) for fiscal 2017 for the ICICI Securities at the upper end of the price band is 49.5 as compared to the average industry peer group P/E ratio of 37.1 (as of March 31, 2017).
- ICICI Securities will not garner the proceeds from the public issue as the IPO of ICICI Securities is a complete offer for sale by the promoter ICICI Bank. The promoter selling shareholder ICICI Bank will be entitled to the entire proceeds of the offer.
- The allotment of equity shares to the ICICI Bank shareholders under the ICICI Bank shareholders’ reservation portion will not result in an increase, directly or indirectly, in the shareholding of ICICI Bank in ICICI Securities.
- ICICI Securities had a net profit of Rs 717.5 million, Rs 891.9 million, Rs 2,938.7 million, Rs 2,387.2 million, Rs 3,385.9 million and Rs 2,460.5 million in the financial years 2013, 2014, 2015, 2016 and 2017 and the six months ended September 30, 2017, respectively.
- ICICI Securities’ return on equity has exceeded 30% for each measured period since fiscal 2013 with a RoE of 69.2% for the financial year ended 31 March 2017.
- Shilpa Naval Kumar serves as the CEO, MD & Director of ICICI Securities and Chanda Kochhar represents the promoter group ICICI Bank as CEO and MD.
- Cyril Amarchand Mangaldas is the Indian legal counsel to ICICI Securities; S&R Associates is the Indian legal counsel to the lead managers; Davis Polk & Wardwell is the International legal counsel to the lead managers; Cyril Amarchand Mangaldas is Indian legal counsel to ICICI Bank while B S R & Co. LLP is the statutory auditors to ICICI Securities.