ICICI Securities IPO.

ICICI Securities Ltd IPO (ICICI Securities IPO) Detail

Company Promoters :

ICICI Bank Ltd is the promoter of the company. ICICI Bank currently holds 322,141,400 Equity Shares, equivalent to 100% of the pre-Offer issued, subscribed and paid-up Equity Share capital of the company.

Business Description : 

ICICI Securities is a leading technology-based securities firm in India that offers a wide range of financial services including brokerage, financial product distribution and investment banking and focuses on both retail and institutional clients. It has been the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange, powered by its significant retail brokerage business, which accounted for 90.5% of the revenue from the brokerage business (excluding income earned on our funds used in the brokerage business) in fiscal 2017.

As of December 31, 2017, ICICI direct, its award winning proprietary electronic brokerage platform, had approximately 3.9 million operational accounts of whom 0.8 million had traded on NSE in the preceding 12 months. Since inception, the company has acquired a total of 4.6 million customers through this platform as of December 31, 2017.

Strengths of the company :

1. Largest Equity Broker in India Powered by Proprietary Technology Platform : ICICIdirect
2. Strong and Growing Distribution Business with an “Open-Source” Distribution Model
3. Superior Customer Experience through Product and Technology Innovation
4. Strategic Component of the ICICI Ecosystem
5. Leading Institutional Platform
6. Strong Financial Performance with Significant Operating Efficiency

ICICI Securities’ consolidated financial performance (in INR crore) :

Objects of the Issue :

The objects of the Offer for the Company are to :

1. Achieve the benefit of listing the Equity Shares on the Stock Exchanges and for the sale of Equity Shares by the Promoter Selling Shareholder.
2. Listing of Equity Shares will enhance its visibility and brand image and provide liquidity to its existing shareholders.

Issue Details :

  • Issue Type: Book Built Issue IPO
  • Issue Size: Offer for Sale of 77,249,508 Equity Shares of Rs 5 aggregating up to Rs [.] Cr 
  • Face Value: Rs 5 Per Equity Share 
  • Total IPO size : 77,249,508 shares (INR4,009.25 – 4,016.97 crore)
  • Retail Allocation : 10%

Tentative Date / Timelines of ICICI Securities IPO :

  • Finalization of Basis of Allotment : On or about Apr 2, 2018
  • Initiation of refunds : On or about Apr 3, 2018
  • Credit of Equity Shares to demat accounts : On or about Apr 4, 2018
  • Commencement of trading of the Equity Shares on the Stock Exchanges : On or about Apr 5, 2018.

Valuation of ICICI Securities (Based on latest FY) :

  • Earnings Per Share (EPS): INR10.51
  • Price/Earnings (P/E) ratio: 49.38 – 49.47
  • Return on Net Worth (RONW): 77.47%
  • Net Asset Value (NAV): INR14.99 per share
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