ICICI Bank plans to list its stock broking arm ICICI Securities and the board of directors has approved a proposal to this effect. The bank, however, did not disclose how much stake it plans to sell through ICICI Securities IPO.
“The board of directors of the bank today approved the sale of a part of its shareholding in ICICI Securities Ltd (the Company) in an initial public offering by the Company, subject to requisite approvals and market conditions,” ICICI Bank said in a regulatory filing.
Pricing and other details of the stock brokerage and merchant banking firm will be decided at a later stage, said ICICI Bank. The company is yet to file draft prospectus with market regulator SEBI for ICICI Securities IPO. After the bank, life insurance and general insurance ventures, ICICI Securities will be the fourth group company to list on the stock exchanges.
ICICI Securities IPO: Full range of services
ICICI Securities offers services such as investment banking, institutional broking, retail broking, private wealth management and financial product distribution. It also operates ICICIdirect.com, an online platform which allows investments and trading in equity, derivatives, currency futures, mutual funds, among other financial products. ICICI Securities has offices in 66 cities and towns across the country and overseas presence includes Singapore and New York.
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ICICI Bank’s latest annual report noted that during FY2017, ICICI securities served 40 lakh (4 million) retail customers by providing them with research, advisory and execution services for their investments. The company’s corporate finance business continued to strengthen its franchise in equity capital markets and was the market leader in the IPO business.
The institutional brokerage business enhanced its presence across domestic and foreign institutional investors through focused research, corporate access and efficient execution. The company achieved a consolidated profit after tax of INR339 crore (INR3.39 billion) in FY2017 compared to INR239 crore (INR2.39 billion) in FY2016.
