ICICI Securities IPO opens on March 22

The initial public offer (IPO) comprises an offer for sale by the promoter selling shareholder of up to 77,249,508 equity shares of face value Rs. 5 each.

The selling promoter ICICI Bank Limited will sell close to 24 per cent of its stake in its brokerage arm ICICI Securities through an IPO aiming to raise approx Rs. 4,000 crore. The price band of the IPO is set at Rs. 519 to Rs. 520 per share. The minimum bid lot is fixed at 28 equity shares. The IPO opens on March 22 and closes on March 26, 2018.

The objectives of the IPO are to achieve the benefit of listing the equity shares on the stock exchanges and for the sale of equity shares by ICICI Bank. The company expects enhanced visibility and brand image through the listing. The IPO is an offer for sale, so the company will not receive any proceeds from the IPO.

The company's peers include Motilal Oswal Financial, Geojit Financial Services and IIFL Holdings. The Indian equity brokerage industry has recorded revenues of Rs. 140 billion in fiscal 2017, representing a 20% year on year growth. While between fiscal 2012 and 2017, the industry revenues have grown at a CAGR of 14%. The growth is attributed to increased trading turnover and heightened retail investor participation. Also, the proportion of trading through the internet in the NSE cash equities markets has increased from 21.5% in fiscal 2013 to 24.2% in fiscal 2016.

ICICI Securities registered a total revenue of Rs. 14,042.3 million in fiscal 2017 and a total revenue of Rs. 8,527.7 million for the six months ended September 30, 2017.