ICICI Securities Raises Rs 1,718 Crore From Anchor Investors
ICICI Securities allocated shares to anchor investors at Rs 520 apiece.
ICICI Securities Ltd. today raised Rs 1,718 crore by selling shares to 58 anchor investors ahead of its initial public offering that opens tomorrow.
The anchor book comprises 45 percent of the total book wherein a minimum of 75 percent can be allocated to qualified institutional bidders, ICICI Bank’s broking arm said in an exchange filing.
International anchors for the offer include Temasek, Fidelity, Fairfax, Nomura, Amansa and BlackRock while HDFC Mutual Fund, DSP BlackRock, Reliance Mutual Fund, Premji Invest and SBI Mutual Fund were among the domestic funds which participated in the anchor allotment.
Before an IPO opens, shares are allotted to anchor investors, which are usually large foreign and domestic funds, to show backing for the offer by institutional investors.
The private bank will offload 7.72 crore shares, or 24 percent stake, in the three-day offer at Rs 519-520 apiece, valuing the company at Rs 16,751 crore. That’s lower than the initially targeted Rs 25,000 crore at the time of filling its draft red herring prospectus.
The lender will continue to hold 76 percent stake in the company after the issue. This will be the third issue from the ICICI Group in three years—after Rs 6,000-crore ICICI Prudential Life Insurance and Rs 5,700-crore ICICI Lombard General Insurance IPOs.
Incorporated in 1995, some of the services offered include retail and institutional broking, financial product distribution, investment banking, merchant banking and advisory services to financial institutions, corporates, retail investors and high net-worth individuals. With the launch of ICICIdirect in 2000, the company started offering brokerage services online.