ICICI Securities’ Stock Rises After Quarterly Profit Jumps Nearly Twofold

Shares of ICICI Securities Ltd. rose as much as 3.2 percent after the brokerage reported nearly twofold jump in its quarterly profit in its first earnings after going public.

The broking arm of India’s second largest private lender ICICI Bank Ltd. reported a profit of Rs 158.6 crore in the quarter ended March, up 91 percent over the year-ago period. The bottom line was unchanged from the previous quarter.

• For the year ended March, net profit rose 64.72 percent to Rs 557.3 crore.
• Revenue for the March quarter increased 34.9 percent to Rs 514.6 crore, helped by a 31 per cent growth in the broking revenues at Rs 275.4 crore.
• Its market share in the equity broking segment improved 120 basis points to 9 percent. The company, which operates the ICICIDirect.com platform, added 460,000 new clients, taking the total number of operational accounts to 40 lakh.

IPO Bailed Out By ICICI Prudential AMC

ICICI Securities listed on April 4 after its initial public offering, which was downsized to Rs 3,500 crore, was bailed out by ICICI Bank-promoted mutual fund, according to its exchange filing. ICICI Prudential Asset Management Company bought over 18 percent of the shares of ICICI Securities in the IPO.

• ICICI Prudential AMC owns 1.23 crore shares in ICICI Securities, which is about 36 percent of the portion set aside for non-anchor investors.
• Overall, the company received bids for 3.43 crore shares in the non-anchor portion of the issue against the proposed issue size of 4.42 crore shares.
• The total issue size including the anchor portion was 6.44 crore shares.
• Ahead of its IPO, ICICI Securities had raised Rs 1,717 crore from 58 anchor investors, which didn’t include ICICI Prudential AMC.

Also Read: ICICI Securities Reduces IPO Size After Failing To Enthuse Wealthy Investors