ICICI Securities Ltd IPO undersubscribed on last day even as institutions overbid

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Updated: Mar 26, 2018 5:20 PM

ICICI Securities Ltd IPO: ICICI Securities Ltd IPO which opened for subscription on Thursday, 22 March 2018, remain undersubscribed on the last day of bidding even as the institutions overbidding followed by a 86% subscription by retail investors.

ICICI Direct's parent company ICICI Securities Ltd has expected to raise up to Rs 4,017 crore at the upper end of the price band of Rs 520 in the three-day bidding process from 22 to 26 March 2018.ICICI Securities Ltd IPO is the first public offer in India by a research and brokerage firm associated with a commercialised bank. (Image: Reuters)

ICICI Securities Ltd IPO: ICICI Securities Ltd IPO (initial public offering) which opened for subscription on Thursday, 22 March 2018, remain undersubscribed on the last day of bidding even as the institutions overbidding followed by a 86% subscription by retail investors. ICICI Securities Ltd IPO is the first public offer in India by a research and brokerage firm associated with a commercialised bank. ICICI Direct’s parent company ICICI Securities Ltd has expected to raise up to Rs 4,017 crore at the upper end of the price band of Rs 520 in the three-day bidding process from 22 to 26 March 2018. ICICI Securities Ltd’s IPO is the fourth public issue from one of India’s largest financial conglomerate ICICI group and the third initial share sale in last three years post the respective IPO’s of ICICI Prudential Life Insurance and ICICI Lombard General Insurance.

ICICI Securities Ltd IPO details of subscription on the last day of bidding

CategoryShares offeredBids receivedSubscription (%)
Institutional Investors22,016,11122,949,528104.24
Non-Institutional Investors11,008,0543,908,54835.51
Retail Investors7,338,7036,348,18886.50
Shareholders3,862,4751,317,70834.12
Total44,225,34334,523,97278.06

Cleary, on the last day of subscription in ICICI Securities Ltd IPO, the company has failed to garner the expected amount even with the shares reserved for institutional investors being oversubscribed by 4%.

Also Read | ICICI Securities IPO opens: 15 things about Rs 4,000 crore public offer you can’t afford to miss

Through the ICICI Securities Ltd’s IPO, the promoter selling shareholder ICICI Bank is entitled to receive all the proceeds from the public offer. 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 whereas Karvy Computershare Pvt Ltd is the registrar to the issue. Notably, the allotment of shares to the shareholders of ICICI Bank under the reserved portion of ICICI Bank shareholders will not affect the shareholding of the parent ICICI Bank in its subsidiary ICICI Securities whether directly or indirectly.

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