ICICI Securities share price | ICICI Securities shares close 15% lower

ICICI Securities share price..ICICI Securities, which is India’s largest broking firm. On Wednesday ICICI Securities share price close 15% lower on market debut, as the scrip got listed at Rs 435 on the NSE, a 16.35% discount to the issue price of Rs 520. On the BSE, the stock listed at Rs 431.10, down 17.10%.

The initial public offering (IPO) of the brokerage arm of ICICI Bank was open for subscription on March 22-26. ICICI Securities cut the size of its IPO to around Rs 3,520 crore after it witnessed low subscription during the share sale in 22-26 March, Mint reported. The company had earlier aimed to raise Rs 4,017 crore, with a price band of Rs 519-520 per share.

ICICI Securities share price

The Rs 4,017-crore IPO got a poor response from investors as the issue saw only 78% subscription on the final day of the bidding process. However, including anchor allotment, the issue received a total of 87.9% bids.

The QIB portion was fully subscribed, but the quota for retail investors (88 per cent) and non-institutional investors (33 per cent) remained undersubscribed.

Post undersubscription, the company cut its IPO size to Rs 3,500 crore. Of this, around Rs 1,717 crore were raised from anchor investors. The QIB (qualified institutional buyer) portion was fully subscribed, but the quota for retail investors (88%) and non-institutional investors (33%) remained undersubscribed.

Incorporated in 1995, ICICI Securities offers a wide range of financial services, including brokerage, financial product distribution and investment banking, and focuses on both retail and institutional clients.

The company’s business heavily relies on retail customers. Retail brokerage revenue contributed around 90.5% in the total brokerage revenue in (FY) Financial Year’ 17. Its average daily turnover for cash equity and equity derivatives traded by their customers increased at a CAGR (compound annual growth rate) of 61.4% to the six months ended 30 September 2017 from fiscal 2013. Its non-brokerage revenue share increased to 36.4% in nine months of FY18 from 29.7% in FY13.

ICICI Bank’s other arms ICICI Lombard General Insurance Co. Ltd and ICICI Prudential Life Insurance Co. Ltd are currently trading 19.74% and 18.56% respectively above their offer price. ICICI Lombard General Insurance Company Ltd was listed in 2017 and saw a gain of 3.11% on listing day while ICICI Prudential Life Insurance Company Ltd listed in 2016 tanked 10.88% on stock markets debut.

Amid controversies, the holding company ICICI Bank has been under selling pressure. The stock has slipped nearly 14% in this year so far.

ICICI Securities offers a pretty broad range of financial Services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. By brokerage revenue, ICICI Securities has been the largest equity broker in India since fiscal 2014.

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