ICICI Securities IPO – Details, Price Band, Analysis
ICICI Securities Limited – a technology-based firm offering a wide range of financial services in India – is planning to raise INR 4016.97 Cr (all OFS) via initial public offer (IPO)
ICICI Securities – Company Profile
- Incorporated in the year 1995, ICICI Securities Limited is a leading securities firm offering a wide range of financial services including (1) Investment Banking, (2) Institutional Broking, (3) Retail Broking, (4) Private Wealth Management, and (5) Financial Product Distribution
- Headquartered in Mumbai, ICICI Securities operates out of 75 cities in India and wholly owned indirect subsidiaries in Singapore and New York.
ICICI Securities – Working Area
- ICICI Securities sees its role as Creating Informed Access to the Wealth of the Nation for its diversified set of clients that include (1) Corporates, (2) Financial Institutions, (3) HNIs, and (4) Retail Investors.
- ICICI Securities empowers more than 40 lac Indians to seamlessly access the capital market with ICICIdirect.com – an award winning online broking platform.
- The platform not only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but also other services such as Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance are also available
- Apart from convenience, ICICIdirect.com also offers access to comprehensive research information, stock picks and mutual fund recommendations among other offerings.
- ICICI Securities has been the largest equity broker in India since 2014 by brokerage revenue and active customers in equities on the NSE, 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.
ICICI Securities – Distribution Network
As on September 30, 2017, ICICI Securities’ retail brokerage and distribution businesses consists of
- Over 200 of its own branches
- Over 2,600 branches of ICICI Bank through which its electronic brokerage platform is marketed, and
- Over 4,600 sub-brokers, authorised persons, independent financial associates and independent associates
Company Promoters
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
Revenue
ICICI Securities Limited shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 705 Cr in FY 2013 to INR 1404 Cr for the period ended FY 2017. (INR 1344.70 Cr till Dec 2017)
Profits
Though the company has shown steady growth in revenue, the company has also registered growth in profits in these 5 years. Starting from INR 75.66 Cr of profits in FY 2013, the company’s earnings improved to INR 337.61 Cr for the period ended FY 2017. (INR 399.1 Cr till Dec 2017)
CONCLUSION –
Considering company’s valuation, financial parameters, and the sector potential in which it is operating, FinBlab recommends NEUTRAL ratings on ICICI SECURITIES LIMITED IPO for the time being
Also Read –
(1) Detail Analysis and Finblab View on MISHRA DHATU NIGAM LTD (MIDHANI) IPO
(2) Finblab’s Valuepick of the month BALKRISHNA INDUSTRIES LIMITED
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