Mumbai: ICICI Securities Ltd, the brokerage and investment banking arm of ICICI Bank Ltd, on Thursday said it will launch its Rs4,017 crore initial public offering (IPO) on 22 March.
ICICI Securities has set a price band of Rs519-520 per share for the IPO. At the upper end of the price band, the share sale values the company at Rs16,751 crore. The latest valuation is lower than the initially targeted valuation of Rs25,000 crore at the time of filling its draft red herring prospectus (DRHP). The offer will close on 26 March.
The share sale is a pure secondary offering that will see the parent ICICI Bank sell a total of 77.24 million shares. The secondary offering will include a reservation of 3.86 million shares for ICICI Bank’s shareholders.
Incorporated in 1995, ICICI Securities offers financial services such as retail and institutional broking, financial product distribution, investment banking, merchant banking and advisory services to financial institutions, corporates, retail investors and high net-worth individuals.
According to Chanda Kochhar, chairperson of ICICI Securities, the company has been the largest equity broking firm since 2014. “We will continue to grow on the back of technological innovation and our growing network," said Kochhar.
With the launch of ICICIdirect in 2000, the company started offering brokerage services online.
According to Shilpa Kumar, MD and CEO of ICICI Securities, approximately 95% of its brokerage transactions are done online.
“90% of our total brokerage revenues comes from the retail," said Kumar, adding that “40% of our total revenues come from non-broking business."
According to Kumar, ICICI Securities will capitalize on Indian financial savings environment that is undergoing a fundamental transformation with the initiative of government such as demonetization, Aadhaar, financial inclusion and direct benefit transfer, and also on digital transformation trend.
“We will continue to invest in technology and innovation, strategically expand our financial product distribution business through cross-selling and diversify revenue streams," added Kumar.
In 2016-17, ICICI Securities reported total revenue of Rs1,403 crore, up 25% from the previous fiscal. The company’s profit rose by 43% to Rs337.61 crore in 2016-17 from a year earlier.
DSP Merrill Lynch Ltd, Citigroup Global Markets India Pvt. Ltd, CLSA India Pvt. Ltd, Edelweiss Financial Services Ltd, IIFL Holdings Ltd and SBI Capital Markets Ltd are managing the ICICI Securities IPO.
ICICI Securities will be the third company from the ICICI group to go public.
Last year, ICICI Lombard General Insurance Co. Ltd raised Rs5,700 crore in an IPO, the first public offering by an Indian general insurance company.
In 2016, ICICI Prudential Life Insurance Co. Ltd raised Rs6,000 crore in an initial share sale, the first public offering by an Indian life insurance company.
In 2017, 33 companies raised Rs65,923 crore through IPOs, a record for the Indian primary market, according to data from primary market tracker Prime Database. In 2016, 26 companies had raised Rs26,493.8 crore from the IPO market.