ICICI Bank is currently looking forward to raising over Rs.4,000 crore through ICICI Securities Ltd., its brokerage and investment banking arm. The initial public offer (IPO) for this fundraising will commence on March 22, and it will last till March 26. This is the third IPO from the ICICI group in about three years after the public offering of ICICI’s insurance arms ICICI Prudential Life Insurance and ICICI Lombard General Insurance.
ICICI Securities is fully owned by the bank, and the net proceeds from the offering will be included in the bank’s fiscal year 2018 financial report. Though the IPO will commence on March 22, anchor investors and large institutional investors can bid on the stock from March 21 onwards. The band price for ICICI Securities has been set at Rs.519 to Rs.520.
In terms of revenues, ICICI Securities is one of the largest broking firms in India. Also, it has the highest number of unique clients in India. Retail broking firm ICICI Direct is a part of ICICI Securities. This offering is for about 24% stake in ICICI Securities, and the bank expects to hold 74% stake in the broking firm following this IPO.
In 2017, ICICI raised Rs.5,700 crore through the IPO of its general insurance wing ICICI Lombard. A year before that the bank raised about Rs.6,000 crore through its life insurance wing ICICI Prudential Life. Compared to its previous two offerings, the IPO of ICICI Securities is relatively low. At the current valuation based on the 24% stake, the firm is valued at Rs.16,750 crore.
ICICI has roped in various firms including Citigroup Global Capital Markets India Pvt Ltd, Edelweiss Financial Services Ltd, CLSA India Pvt Ltd, DSP Merrill Lynch Ltd, SBI Capital Markets Ltd, and IIFL Holdings Ltd to manage this IPO.
ICICI has reported strong financial performance in the current fiscal year with net profits rising 47% to Rs.246 crore for the first half ended September 2017.
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