Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
IPO News

| More

ICICI Securities Ltd - IPO Note - Sushil Finance

Posted On: 2018-03-22 09:46:38

Price band for IPO - Rs. 519 to Rs. 520
Issue Opens on: March 22, 2018
Issue Closes on: March 26, 2018

ICICI Securities Ltd is a leading technology-based securities firm in India that offers a wide range of financial services including brokerage, financial product distribution and investment banking and focuses on both retail and institutional clients. They have been the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange, powered by their significant retail brokerage business, which accounted for 90.5% of the revenue from their brokerage business in fiscal 2017.

As of December 31, 2017, ICICI direct, their award winning proprietary electronic brokerage platform, had approximately 3.9 million operational accounts of whom 0.8 million had traded on NSE in the preceding 12 months. Since inception, they have acquired a total of 4.6 million customers through this platform as of December 31, 2017.

Their retail brokerage and financial product distribution businesses empower their customers to access the Indian financial capital markets through their ICICI direct platform and provide them with a seamless settlement process through a 3-in-1 account, which links the electronic brokerage platform with customers' savings bank and dematerialized accounts held with ICICI Bank.


- Largest Equity Broker in India Powered by a Proprietary Technology Platform: ICICIdirect.
- Natural Beneficiary of Fundamental Transformation in the Indian Savings Environment.
- Strong and Growing Distribution Business with an "Open-Source" Distribution Model.
- Superior Customer Experience through Product and Technology Innovation.
- Strategic Component of the ICICI Ecosystem.
- Leading Institutional Platform.
- Strong Financial Performance with Significant Operating Efficiency.
- Experienced Senior Management Team.

Objects of the issue

- The issue is an offer for sale by the promoter, ICICI Bank, the company will not receive any benefits from the issue.


ICICI Securities is one of the pioneers in the online broking services in India, catering to a vast customer base which consists primarily of retail investors. The business is based on an asset light model relying on their electronic brokerage, 'ICICI-direct' platform.

Financially, the company has showcased its strong technology based business model, with the revenues growing at 19% CAGR over the last 5 years, the PAT growing at 45% CAGR. This is mainly attributable to their asset light model and the improvement in the scale of operations.

The EBITDA Margin has been at an average of 32% over the last 5 years, and was 40.2% and 48.9% in F.Y 17 and Dec'17 respectively. The PAT Margin on average was at 17% over 2013-17, and 24% and 29.6% for F.Y 17 and Dec'17.

For F.Y 17 the company had an ROE of 69.6% and an ROCE of 91.32%, while the average ROE and ROCE over 2013-17 were 49% and 71% respectively. The company had an ROA of 16.55% in fiscal'17.

Looking at the valuation, the issue price of 520 is at 25 times the book value based on Dec'17 numbers, and the P/E Ratio comes to 31.5 times on F.Y-18 earnings (annualized). This when compared to peers identified by the company is near the average P/E of the pack.

The company has increased its market share from 4% in 2013 to 9% in 2017, which is highly commendable. This is an excellent play on the shift to Financial Assets vs. Real Assets. We advise investors to subscribe to the issue & stay invested for the medium to long term.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Initial Public Offer: Garden Reach Shipbuilders & Engineers - Kotak

Initial Public Offer: Dinesh Engineers Ltd - Kotak

Subscription for Kritika Wires Ltd IPO open

Garden Reach Shipbuilders & Engineers Ltd IPO extended, price band revised

IPO of Spectrum Electrical Industries Limited Opens on September 17, 2018

Ahlada Engineers IPO opens for subscription on Sep 11, 2018

Rajshree Polypack Ltd NSE SME IPO to open for subscription on Sep 10, 2018

Marquee investor, Sunil Singhania's Abakkus Growth Fund - 1 invests in Rajshree Polypack Limited as Anchor Investor

Equity shares of CreditAccess Grameen Limited to list on Aug 23, 2018

TCNS Clothing Company Ltd to list on July 30, 2018

HDFC AMC IPO receives subscription of 83.04 times

HDFC Asset Management Co - IPO Note - Angel Broking

TCNS Clothing Company Limited - IPO Note - Angel Broking

Rajnish Wellness Ltd IPO to hit markets on June 25, 2018

Varroc Engineering Limited IPO to open for subscription on June 26, 2018

RITES Limited IPO receives overwhelming response from investors

Fine Organic Industries Limited IPO receives subscription of 8.99 times

Varroc Engineering Ltd - IPO Note - Angel Broking

RITES Ltd - IPO Note - Angel Broking

Fine Organic Industries Ltd - IPO Note - Angel Broking

Avana Logistek Ltd files DRHP with SEBI for IPO

IndoStar Capital Finance Ltd - IPO Note - Angel Broking

IndoStar Capital Finance Limited Offer opens on May 9, 2018

IPO Note - SoftTech Engineers Ltd - Arihant Capital Markets Ltd

Hindustan Aeronautics Ltd to list on March 28, 2018

Expectations high on listing of Bandhan Bank shares tomorrow

Mishra Dhatu Nigam Limited IPO receives subscription of 1.21 times

Lemon Tree Hotels Limited - IPO Note - Angel Broking

Mishra Dhatu Nigam Ltd - IPO Note - Sushil Finance

Lemon Tree Hotels Ltd - IPO Note - Sushil Finance

Mishra Dhatu Nigam Ltd - IPO Note - Angel Broking

Mishra Dhatu Nigam Ltd - IPO Note - Avoid - Hem Securities

ICICI Securities Ltd - IPO Note - SSJ Finance & Securities

Mishra Dhatu Nigam Ltd - IPO Note - Subscribe - SSJ Finance & Securities


IPO Note: ICICI Securities Ltd - SUBSCRIBE - Kotak

IPO: Mishra Dhatu Nigam Ltd - IIFL

Sandhar Technologies Limited - IPO Note - Angel Broking

Hindustan Aeronautics LTD - IPO Note - HEM Securities

ICICI Securities IPO to open for subscription on Mar 22, 2018

IPO Note: Sandhar Technologies Ltd - SUBSCRIBE - Kotak

IPO Note: Hindustan Aeronautics Ltd - SUBSCRIBE - Kotak

Bandhan Bank Ltd - IPO Note - Subscribe - HEM Securities

HDFC Asset Management Company Ltd files DRHP for IPO

Bandhan Bank Ltd - IPO Note - Subscribe - SSJ Finance

Bandhan Bank Limited - IPO Note - Angel Broking

IPO of ICICI Securities Ltd to open on March 22, 2018

Bharat Dynamics Ltd - IPO Note - SUBSCRIBE - Kotak

Bharat Dynamics Ltd - SUBSCRIBE - IPO Report - HEM SECURITIES

Bandhan Bank Ltd - IPO NOTE - Arihant Capital Markets

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018