ICICI Securities, India’s seventh largest mutual fund distributor by assets will come out with its IPO soon. ICICI Securities offers a wide range of services including investment banking, institutional broking, retail broking, private wealth management and financial product distribution.
In a corporate filing with BSE, ICICI Bank has said that the board has decided to sell its stake in ICICI Securities through listing. The company said, “The Board of Directors of the Bank approved the sale of a part of its shareholding in ICICI Securities in an initial public offering by the Company, subject to requisite approvals and market conditions. The size and other details of the offer would be determined in due course.”
ICICI Securities had recorded a healthy growth of 27% in its assets under advisory as it grew from close to Rs.16,000 crore in FY 2015-16 to Rs.20310 crore in FY 2016-17.
In addition, the company earned gross commission of Rs.173 crore in FY 2016-17 as against RS.111 in FY 2015-16, a heathy growth of 62% in one year. This indicates that the company earned 85 basis points of its assets under advisory as commission, which was higher than the industry average of 72 basis points.
