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. They have the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange (Source: CRISIL), powered by our significant retail brokerage business, which accounted for 90.5% of the revenue from their brokerage business (excluding income earned on their own funds used in the brokerage business) in fiscal 2017. As of December 31, 2017, ICICIdirect, 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 (Source: NSE). Since inception, they acquired a total of 4.6 million customers through this platform as of December 31, 2017.
Companies retail brokerage and financial product distribution businesses empower their customers to access the Indian financial capital markets through their ICICIdirect platform and provide them with a seamless settlement process through a 3-in-1 account, which links our electronic brokerage platform with customers’ savings bank and dematerialised accounts held with ICICI Bank.
Companies headquartered in Mumbai, and operate offices in India, the United States, Singapore and Oman. They are a part of the ICICI Group, one of the largest financial conglomerates in the country and promoted by ICICI Bank, India’s largest private sector bank in terms of consolidated total assets with an asset base of Rs. 10.5 trillion as at December 31, 2017. The ICICI Group includes the largest Indian private-sector life insurance company by retail weighted received premiums, the largest Indian private-sector general insurance company by gross written premium, each in fiscal 2017, the largest Indian asset management company by average assets under management in India for the quarter ended December 31, 2017 (Source: AMFI), and other companies involved in home finance, private equity, primary dealership and other businesses.
- Rs. 4009.25 Cr to Rs. 4016.97 Cr [Issue of 77,249,508 equity shares]
Fresh Issue – Nil, Offer for Sale – 77,249,508 equity shares - 28 Equity Shares and in multiple thereafter
- QIB - 75% NIB - 15% Retail - 10%
- Rs. 10
- ASBA mandatory (No cheques will be accepted)
- Proposed to be listed on BSE and NSE
- BofA Merrill Lynch (DSP Merrill Lynch Ltd), Citigroup Global Markets India Private Ltd, CLSA India Private Ltd, Edelweiss Financial Services Ltd, IIFL Holdings Ltd, SBI Capital Markets Ltd.
- Karvy Computershare Private Limited
- Largest Equity Broker in India Powered by Proprietary Technology Platform: ICICIdirect
- Natural Beneficiary of Fundamental Transformation in the Indian Savings Environment
- Strong and Growing Distribution Business with an “Open-Source” Distribution Model
- Superior Customer Experience through Product and Technology Innovation
- Strategic Component of the ICICI Ecosystem
- Leading Institutional Platform
- Strong Financial Performance with Significant Operating Efficiency
- Experienced Senior Management Team
The Offer comprises an offer for sale by the Promoter Selling Shareholder.
The Promoter Selling Shareholder will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon.
I. Achieve the benefit of listing the Equity Shares on the Stock Exchanges and for the sale of Equity Shares by the Promoter Selling Shareholder;
II. Listing of Equity Shares will enhance its visibility and brand image and provide liquidity to its existing shareholders.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.