A trader speaks on a phone as he monitors financial data at a broking firm. (Photographer: Simon Dawson/Bloomberg)

ICICI Securities Lowers Valuation Ahead Of Primary Market Debut Next Week

ICICI Securities Ltd., the broking and merchant banking arm of ICICI Bank Ltd., will look to launch its initial public offering next week at two-thirds of the valuation it had originally sought.

The IPO, an offer for sale of shares, will see ICICI Bank selling nearly 22 percent of its stake valuing the company between Rs 16,500-18,000 crore, two people aware of the development told BloombergQuint on the condition of anonymity. The company was originally looking at a valuation of Rs 25,000 crore at the time of filing the draft red herring prospectus, the people said.

ICICI Bank is expected to raise Rs 3,700- 4,000 crore through the offer for sale, they added.

An email to ICICI Securities and ICICI Bank remained unanswered.

ICICI Bank is preparing to sell shares in its brokerage arm after listing its general insurance and life insurance ventures over the past two years. Initial public offerings in India have raised a record Rs 66,517 crore from the primary markets in the financial year 2017-18, data compiled by BloombergQuint shows.

ICICI Securities is expected to file its updated draft red herring prospectus today and the RHP over the next two days, the two people quoted above said.

About 75 percent of the shares in the offer for sale will be allocated to institutions and the remaining 25 percent will be set aside for retail investors, high net-worth individuals and shareholders of ICICI Bank.

The offer is likely to launch next week and the process is expected to be completed by March-end, the people said. SBI Caps, Bank of America Merrill Lynch, Citigroup, IIFL, CLSA and Edelweiss are managing the issue, according to information from the previous DRHP.