Business description – 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. It has been the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange, powered by its significant retail brokerage business, which accounted for 90.5% of the revenue from the brokerage business (excluding income earned on our funds used in the brokerage business) in fiscal 2017.
As of December 31, 2017, ICICIdirect, its 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. Since inception, the company has acquired a total of 4.6 million customers through this platform as of December 31, 2017.
Promoters of ICICI Securities – ICICI Bank Limited
| ICICI Securities IPO details | |
| Subscription Dates | 22 – 26 March 2018 |
| Price Band | INR519 – 520 per share |
| Fresh issue | Nil |
| Offer For Sale | 77,249,508 shares (INR4,009.25 – 4,016.97 crore) |
| Total IPO size | 77,249,508 shares (INR4,009.25 – 4,016.97 crore) |
| Minimum bid (lot size) | 28 shares |
| Face Value | INR5 per share |
| Retail Allocation | 10% |
| Listing On | NSE, BSE |
| ICICI Securities’ consolidated financial performance (in INR crore) | ||||||
| FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | 9M FY2018 | |
| Total revenues | 705.8 | 812.3 | 1,209.5 | 1,124.6 | 1,404.2 | 1,344.7 |
| Total expenses | 597.2 | 672.5 | 759.8 | 750.5 | 882.2 | 732.1 |
| Profit after tax | 71.8 | 89.2 | 293.9 | 238.7 | 338.6 | 399.1 |
| Net margin (%) | 10.2 | 11.0 | 24.3 | 21.2 | 24.1 | 29.7 |
ICICI Securities Contact Details
ICICI Securities LimitedÂ
Shree Sawan Knowledge Park, Plot No. D-507
T.T.C. Industrial Area MIDC, Turbhe
Navi Mumbai 400 705
Phone:Â +91 22 6637 7100
Fax:Â +91 22 2288 2445
Email: [email protected]
Website:Â www.icicisecurities.com
Registrar of ICICI Securities IPO
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone:Â +91 40 6716 2222Â
Fax:Â +91 40 2343 1551Â
Email:Â [email protected]
Website:Â www.karvycomputershare.com
Valuation of ICICI Securities (Based on latest FY)
Earnings Per Share (EPS): INR10.51
Price/Earnings (P/E) ratio: 49.38 – 49.47
Return on Net Worth (RONW): 77.47%
Net Asset Value (NAV): INR14.99 per share
ICICI Securities IPO Subscription Details
| Category | Shares offered | Subscription (no. of times)Â | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 22,016,111 | 0.48 | 0.54 | 1.04 |
| NII | 11,008,054 | 0.04 | 0.05 | 0.35 |
| Retail | 7,338,703 | 0.21 | 0.39 | 0.88 |
| ICICI Bank shareholders | 3,862,475 | 0.09 | 0.16 | 0.33 |
| Total | 44,225,343 | 0.29 | 0.36 | 0.78 |
ICICI Securities IPO Allotment Status
ICICI Securities IPO allotment status is now available on Karvy Computershare’s website. Click on this link to get allotment status.
Listing Performance of ICICI Securities
IPO Opening Date: 22 March 2018
IPO Closing Date: 26 March 2018
Finalisation of Basis of Allotment: 2 April 2018
Initiation of refunds: 3 April 2018
Transfer of shares to demat accounts: 4 April 2018
Listing Date: 4 April 2018
Listing Price on NSE: INR435 per share (down 16.34% from IPO price)
Closing Price on NSE: INR445.1 per share (down 14.40% from IPO price)
PE ratio is not attractive so much high
Very high priced but ICICI Direct is the best and largest in the business. There is no other company close to it in number of users. I have been using ICICI Direct for many years and I’m happy even though brokerage is high.
Good anchor list but it is just covering the fact that icici has always brought ipo at high prices. Clearly avoiding this one, trade war is starting and stock markets may see panic selling…
There are rumours Chanda Kochar may be arrested with Essar case. If that happens it would be a a big negative for this IPO.
Tax on a long term gain is positive for brokerage companies and icici securities is leading one so though expensive but can be hold for atleast one quarter result . Huge profit is expected.
ICICI brand has taken a big hit after Kochar fiasco. Sure shot it will list below the allotment price but icicidirect is a fundamentally good company. I plan to keep adding in this month with a 12 month horizon. I think it can double if market conditions improve.
ICICI Direct is taking hit because of incredibly high valuation and intense competition in the broking industry. But we have to understand that ICICIDirect has a huge following among traders. We have to wait and watch at least for next on equarter.Ms Kochar is likely to move ahead unscatched.