Mumbai : ICICI Securities (I-Sec), technology-based securities firm in India, has been the largest equity broker in India since fiscal 2014 in terms of brokerage revenue and active customers in equities on the National Stock Exchange, stated CRISIL.
To unlock value for stakeholders and listing purpose, I-Sec is coming out with a maiden IPO of 7,72, 49,508 equity shares of Rs 5 each as Offer for Sale (OFS) via book building issue with a price band of Rs 519 – Rs 520 to mobilise Rs 4,009.25 crore to Rs 4,016.97 crore (based on lower and upper price bands). Issue opens for subscription on March 22, 2018 and will close on March 26, 2018. Minimum application is to be made for 28 shares and in multiples thereon, thereafter.
Post allotment, shares will be listed on BSE and NSE. I-Sec has reserved 38, 62, 475 (5 per cent) shares for purchase by the ICICI Bank retail and HUF stakeholders who were on the books of bank as on March 13, 2018. Issue constitutes 23.98 per cent of the post issue paid up capital of the company. BRLMs to this offer are BofA Merrill Lynch (DSP Merrill Lynch Ltd.), Citigroup Global Markets India Pvt. Ltd., CLSA India Pvt. Ltd., Edelweiss Financial Services Ltd., IIFL Holdings Ltd and SBI Capital Markets Ltd. Karvy Computershare Pvt. Ltd. is the registrar to the issue.
The average cost of acquisition of shares by the selling stakeholder is Rs 5.82 per share. On the net issue size, excluding ICICI Bank stakeholder reserved quota, I-Sec has reserved 75 per cent issue for QIBs, 15 per cent for HNIs and 10 per cent for retail investors. Post issue, I-Sec paid up capital remains same at Rs. 161.07 crore.
On performance front, I-Sec has (on a consolidated basis) reported revenue/net profits of Rs 812.26 crore / Rs 89.19 crore (FY14), Rs 1,209.51 crore / Rs 293.87 crore (FY15), Rs 1,124.58 crore / Rs 238.72 crore (FY16), Rs 1,404.23 crore / Rs 338.59 crore (FY17). For first nine month of the current fiscal, it has earned net profit of Rs 399.09 crore on revenue of Rs 1,344.69 crore. If suffered a setback for FY16 in line with general trends of the markets, its entire equity is issued at par since inception. For last five fiscals, it has reported related party revenue of around 10 per cent on an average in the total revenues. About 40 per cent of revenues are from non-broking business.
On BRLM’s front, six merchant bankers associated with the offer have handled 55 public issues in the past three years out of which 14 issues closed below the issue price on listing date.