India: ICICI Securities cut IPO size to nearly $542m owing to weak subscription

Photo: Reuters

ICICI Securities Ltd, the brokerage and investment banking arm of ICICI Bank Ltd, on Monday cut the size of its initial public offering (IPO) to around Rs3,520 crore after IPO witnessed low subscription, especially in the portion of shares reserved for high net-worth individuals (HNI).

As of 6pm, the ICICI Securities IPO (excluding the shares alloted to anchor investors) was subscribed 78%, according to data from the stock exchanges. The portion of shares reserved for institutional investors saw a subscription of 104%, while those kept aside for retail investors and high net-worth individuals (HNIs) were subscribed 88% and 36%, respectively. On the second day, the offering was subscribed just 36%.

ICICI Securities had initially planned to sell shares worth Rs4,017 crore through its IPO and had set a price band of Rs519-520 per share. The share sale opened on 22 March. ICICI Bank was targeting to sell a 24% stake in the brokerage firm through the IPO.

“The company has successfully closed its proposed offer for sale (OFS) and raised approximately around Rs3,500 crore. Earlier, OFS attracted a strong response from anchor investors raising around Rs1,717 crore on 21st March 2018. The QIB (qualified institutional buyer) portion was fully subscribed as of 8.30pm on 26th March 2018,” the company said in a statement.

On 21 March, ICICI Securities raised Rs1,717 crore by allotting shares to institutional investors as part of the so-called anchor book allocation. Investors such as Temasek Holdings Pvt. Ltd, Fidelity Investments, Fairfax Financial Holdings Ltd, Nomura Holdings Inc., Amansa Holdings Pvt. Ltd, BlackRock Inc., HDFC Mutual Fund, Reliance Mutual Fund, PremjiInvest and others participated in the ICICI Securities IPO.

Also Read:

India: ICICI Securities raises $264m from Temasek, other anchor investors ahead of IPO

Banks take advantage of dynamic IPO market to unlock subsidiaries’ value

This article was first published on Livemint.com

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.