Friday, March 29

ICICI Securities Decreased the Size of IPO After Slow Start

Brokerage firm giant ICICI Securities decreased the amount of its initial public offering to almost Rs3,500 crore after the opening sale met a slow start, particularly since targeted individuals with large assets didn’t seem interested. ICICI Securities is the third daughter company of the ICICI Group to join the market since 2016 and overall fourth after ICICI Bank, ICICI Prudential Life and ICICI Lombard General Insurance.

The initial opening of the IPO was set to Rs4,016 crore and met a subscription of 88% inclusive of the anchor portion, which accounts for 10% of subscriptions.

ICICI Securities released a statement saying it “successfully closed its proposed Offer for Sale (OFS) and raised around Rs3,500 crore.”

The IPO collected bids buying 34,575,396 shares from the 44,225,343 shares (excluding anchor portion) set, NSE data reveal.

BSE data show that the Qualified Institutional Buyers (QIBs) quota subscribed 1.04 times while non-institutional investors account for 35% of subscriptions and retail investors 88%.

When the IPO opened on March 22, exactly 77,249,508 shares, each tagged at Rs519-520 a share, were available inclusive of the 33,024,165 shares accounting for the anchor portion.

The announcement indicating the closure of the offer at Rs3,500 crore carried a statement reporting, “Earlier, the OFS attracted a strong response from anchor investors raising around Rs1,717 crore on March 21, 2018. The QIB portion was fully subscribed.”

Last week, Rs1,717 crore was raised from anchor investors including DSP Merrill Lynch, ICICI Securities, Citigroup Global Markets India, CLSA India, Edelweiss Financial Services, IIFL Holdings and SBI Capital Markets.

Recently, a large number of IPOs reached the market and most of them prompted positive response from investors.