ICICI Securities IPO Shares Subscribed By 9 Percent on First Day of Issue

ICICI Securities, the brokerage arm of India's largest private lender ICICI Bank, was subscribed 9 percent till 2:15 pm on Thursday, the first day of the bidding process.

The price band for the issue has been fixed at Rs 519 - Rs 520 per piece. ICICI Bank aims to raise about Rs 4,017 crore at the upper end of the price band by selling 7.7 crore shares or 24 percent of its stake in ICICI Securities.

On March 21, 2018, the ICICI Securities allotted 3.3 crore shares at Rs 520, at the upper end of the price band. The ICICI Bank, secured Rs 1,718 crore through allotment of shares to 58 anchor investors.

Analysts are expecting the issue to attract huge investor interest but suggested that only long-term investors should consider the issue.

Kotak Securities in a note said that "In the past two years, the broking industry in India has witnessed growth in terms of increase in new accounts, higher income from distribution business and a sharp rise in primary market transactions. Given ICICI Securities' presence across different segments, the customer base helps the company explore new opportunities. We recommend subscribe to the issue."