ICICI Securities, the broking subsidiary of private-sector lender ICICI Bank, will hit the initial public offer (IPO) market next Thursday.
The company will offer 7,72,49,508 equity shares for subscription. Here are the key things to know about the ICICI Securities IPO:
• ICICI Bank proposes to raise Rs 4,020 crore by selling a 24 percent share in ICICI Securities
• ICICI Securities IPO will open March 22 and close March 26. The offer will be open for anchor investors March 21
• The price band of the IPO has been set at Rs 519-520 per share. Investors can apply for a minimum of 28 equity shares and multiples of 28 thereafter
• Citigroup, CLSA, Edelweiss, IIFL, Bank of America Merrill Lynch, and SBI Capital Markets are the managers of the IPO
• The proceeds from the issue will be headed to the bank and the equity shares offered by the company are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
ICICI Securities is the brokerage and merchant banking arm of ICICI Bank. The firm provides services including brokerage, financial product distribution, and investment banking to both institutional and retail clients.
ICICI Securities got the approval from market regulator Securities and Exchange Board of India (SEBI) in February this year to float IPO.
ICICI Securities is the third entity of ICICI Bank where the lender is diluting its stakes. In 2017, ICICI Bank had diluted part of its holdings in ICICI Prudential Life Insurance Company and general insurance wing — ICICI Lombard. ICICI Lombard was the first general insurer to go public.
Bankers and stock market experts have predicted that 2018, like 2017, will be a busy year for capital markets. Companies from different sectors are lined up to raise crores through share-sale offers in the coming months.