Mumbai: ICICI Securities Ltd, the brokerage and investment banking arm of ICICI Bank Ltd, on Monday cut the size of its initial public offering (IPO) to around Rs3,520 crore after IPO witnessed low subscription, especially in the portion of shares reserved for high net-worth individuals (HNI).

As of 6pm, the ICICI Securities IPO (excluding the shares alloted to anchor investors) was subscribed 78%, according to data from the stock exchanges. The portion of shares reserved for institutional investors saw a subscription of 104%, while those kept aside for retail investors and high net-worth individuals (HNIs) were subscribed 88% and 36%, respectively. On the second day, the offering was subscribed just 36%.

ICICI Securities had initially planned to sell shares worth Rs4,017 crore through its IPO and had set a price band of Rs519-520 per share. The share sale opened on 22 March. ICICI Bank was targeting to sell a 24% stake in the brokerage firm through the IPO.

“The company has successfully closed its proposed offer for sale (OFS) and raised approximately around Rs3,500 crore. Earlier, OFS attracted a strong response from anchor investors raising around Rs1,717 crore on 21st March 2018. The QIB (qualified institutional buyer) portion was fully subscribed as of 8.30pm on 26th March 2018," the company said in a statement.

On 21 March, ICICI Securities raised Rs1,717 crore by allotting shares to institutional investors as part of the so-called anchor book allocation. Investors such as Temasek Holdings Pvt. Ltd, Fidelity Investments, Fairfax Financial Holdings Ltd, Nomura Holdings Inc., Amansa Holdings Pvt. Ltd, BlackRock Inc., HDFC Mutual Fund, Reliance Mutual Fund, PremjiInvest and others participated in the ICICI Securities IPO.

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