ICICI Securities makes weak market debut, lists at 17% discount to issue price

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NEW DELHI: ICICI Securities, India’s largest broking firm, on Wednesday made a listless market debut as the scrip got listed at Rs 435 on the NSE, a 16.35 per cent discount to the issue price of Rs 520. On the BSE, the stock listed at Rs 431.10, down 17.10 per cent.

The initial public offering (IPO) of the brokerage arm of ICICI Bank was open for subscription on March 22-26. The price band of the offer was fixed at Rs 519-520.

The Rs 4,017-crore IPO got a poor response from investors as the issue saw only 78 per cent subscription on the final day of the bidding process. However, including anchor allotment, the issue received a total of 87.9 per cent bids.

The QIB portion was fully subscribed, but the quota for retail investors (88 per cent) and non-institutional investors (33 per cent) remained undersubscribed.

Post undersubscription, the company cut its IPO size to Rs 3,500 crore. Of this, around Rs 1,717 crore were raised from anchor investors. The QIB portion was fully subscribed, but the quota for retail investors (88 per cent) and non-institutional investors (33 per cent) remained undersubscribed.

Incorporated in 1995, ICICI Securities offers a wide range of financial services, including brokerage, financial product distribution and investment banking, and focuses on both retail and institutional clients.

The company operates ICICIdirect.com, an online broking platform, for investors to help them in their investment choices.

The company’s revenue from the non-broking business, which mainly consists of distribution and investment banking, now accounts for 37.4 per cent of total pie (FY17), up from 29.7 per cent (FY13).

Shilpa Naval Kumar, CEO and MD of ICICI Securities, said the shift from physical savings to financial ones has come about in the wake of the cash ban, which coupled with a push for digitisation are a boon for the digital financial space.

Source economictimes.indiatimes.com
Via economictimes.indiatimes.com

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