Ashika Stock Broking Limited Ashika Research - Equities 1 IPO Note: ICICI Securities Ltd. Issue Snapshot Company Name ICICI Securities Ltd. Issue Opens March 22, 2018 to March 26, 2018 Price Band Rs. 519 to Rs. 520 Bid Lot 28 Equity Shares and in multiples thereof. The Offer Public issue of 77,249,508 Equity shares of Face value Rs. 5 each, (Comprising of Offer for Sale). Issue Size Rs. 4017.0 Crore IPO Process 100% Book Building Face Value Rs. 5.00 Exchanges NSE & BSE BRLM DSP Merrill Lynch Limited, Citigroup Global Markets India Private Limited, CLSA India Private Limited, Edelweiss Financial Services Limited, IIFL Holdings Limited and SBI Capital Markets Limited Registrar Karvy Computershare Private Limited Industry: Financial Services Date: March 21, 2018 1008, Raheja Centre, 214, Nariman Point, Mumbai-400 021, Ph- 022 – 6611 1700, Extn. - 704 www.ashikagroup.com Company Highlights ICICI Securities Ltd. (I-sec) 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 FY14 by brokerage revenue and active customers in equities on the National Stock Exchange (Source: CRISIL), powered by significant retail brokerage business, which accounted for 90.5% of the revenue from its brokerage business (excluding income earned on its funds used in the brokerage business) in FY17. As of December 31, 2017, ICICIdirect had approximately 3.9 million operational accounts of whom 0.8 million had traded on NSE in the preceding 12 months (Source: NSE). Since inception, it acquired a total of 4.6 million customers through this platform as of December 31, 2017. The financial savings environment in India has undergone a fundamental transformation in recent years. Strong macroeconomic factors such as growing gross domestic product, increasing formalization of economy, lower inflation and falling interest rates have contributed to the growing shift of household savings towards financial assets. Consequently, India is witnessing increasing retail and domestic institutional participation in Indian equity markets. However, activity in capital markets in India remains low compared to global markets as demonstrated by market capitalization to GDP ratio of 69% for India compared to global average of 99% in 2016 (Source: CRISIL). Being one of the pioneers in the e-brokerage business in India, along with its strong brand name, large registered customer base, wide range of products across asset classes, position I-sec to be the natural beneficiary of the growth in digitization and resultant transformational changes in the Indian savings markets. I-sec also distribute various third- party products including mutual funds, insurance products, fixed deposits, loans, tax services and pension products. All its businesses verticals are supported by its nationwide network, consisting of over 200 own branches, over 2,600 branches of ICICI Bank through which its electronic brokerage platform is marketed and over 4,600 sub-brokers, authorized persons, independent financial associates and independent associates as at December 31,2017. Issue Break up Issue Size Allocation Equity Shares* QIB ex Anchor 30% 22,016,110 Anchor Investor 45% 33,024,165 HNI 15% 11,008,055 RII 10% 7,338,703 Total Public 100% 73,387,033 ICICI Bank Shareholders 3,862,475 Total 77,249,508 Equity Share Pre Issue (Nos. Cr.) 32.2 OFS Share (Nos. Cr.) 7.7 Equity Share Post Issue (Nos. Cr.) 32.2 Market Cap (Rs. Cr.) 16,751.4 Dilution 24.0% * Based on Higher Price Band @ 520 Objects of the Offer Offer for Sale The Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder. The objects of the Offer are to achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges. The listing of the Equity Shares will enhance the Company’s brand and provide liquidity to the existing Shareholders.
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1
IPO Note: ICICI Securities Ltd.
Issue Snapshot
Company Name ICICI Securities Ltd.
Issue Opens March 22, 2018 to March 26, 2018
Price Band Rs. 519 to Rs. 520
Bid Lot 28 Equity Shares and in multiples thereof.
The Offer Public issue of 77,249,508 Equity shares of Face value
Rs. 5 each, (Comprising of Offer for Sale).
Issue Size Rs. 4017.0 Crore
IPO Process 100% Book Building
Face Value Rs. 5.00
Exchanges NSE & BSE
BRLM
DSP Merrill Lynch Limited, Citigroup Global Markets
India Private Limited, CLSA India Private Limited,
Source: RHP, Ashika ResearchNote: ISec fig. are calculated based on post issue diluted and higher price band. All Fig. are on TTM basis except D/E, RoNW are on FY17.
Ash
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41008, Raheja Centre, 214, Nariman Point, Mumbai-400 021, Ph- 022 – 6611 1700, Extn. - 704 www.ashikagroup.com
Ashika Stock Broking Limited (“ASBL”) or Research Entity has started its journey in the year 1994 and is engaged in the business of broking services,
depository services, distributor of financial products (Mutual fund, IPO & Bonds). This research report has been prepared and distributed by ASBL in the
sole capacity of a Research Analyst (Reg No. INH000000206) of SEBI (Research Analyst) Regulations 2014. ASBL is a wholly owned subsidiary of Ashika
Global Securities (P) Ltd., a RBI registered non-deposit taking NBFC Company. Ashika group (details is enumerated on our website
www.ashikagroup.com) is an integrated financial service provider inter alia engaged in the business of Investment Banking, Corporate Lending,
Commodity Broking, Debt Syndication & Other Advisory Services.
There were no significant and material disciplinary actions against ASBL taken by any regulatory authority during last three years.
Disclosure
ASBL or its associates, its Research Analysts (including their relatives) may have financial interest in the subject company(ies). However, the said
financial interest is not limited to having an open stock market position in /acting as advisor to /having a loan transaction with the subject company(ies)
apart from registration as clients.
1) ASBL or its Research Analysts (including their relatives) do not have any actual / beneficial ownership of 1% or more of securities of the subject
company(ies) at the end of the month immediately preceding the date of publication of this report or date of the public appearance. However
ASBL's associates may have actual / beneficial ownership of 1% or more of securities of the subject company(ies).
2) ASBL or their Research Analysts (including their relatives) do not have any other material conflict of interest at the time of publication of this
research report or date of the public appearance. However ASBL's associates might have an actual / potential conflict of interest (other than
ownership).
3) ASBL or its associates may have received compensation for investment banking, merchant banking, and brokerage services and for other products
and services from the subject companies during the preceding 12 months. However, ASBL or its associates or its Research analysts (forming part
of Research Desk) have not received any compensation or other benefits from the subject companies or third parties in connection with the
research report. Moreover, Research Analysts have not received any compensation from the companies mentioned herein in the past twelve
months.
4) ASBL or their Research Analysts have not managed or co–managed public offering of securities for the subject company(ies) in the past twelve
months. However ASBL's associates may have managed or co–managed public offering of securities for the subject company(ies) in the past
twelve months.
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6) Neither ASBL nor its Research Analysts have been engaged in market making activity for the companies mentioned in the report.
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The research recommendation and information herein are solely for the personal information of the authorized recipient and does not construe to be
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Name Designation Email ID Contact No.
Paras Bothra President Equity Research [email protected] +91 22 6611 1704