ICICI Securities Ltd, the stock broking arm of ICICI Bank Ltd, has raised Rs 1,717 crore ($263 million) from a bunch of anchor investors including Singapore state investment firm Temasek ahead of its initial public offering that begins on Thursday.
The company allotted a tad more than 33 million shares to anchor investors at the upper end of the IPO price band of Rs 519-520 apiece, the bank said in a stock-exchange filing.
Other marquee investors participating in the anchor allotment include Norwegian sovereign fund Government Pension Fund Global, FIH Investments under billionaire investor Prem Watsa’s Fairfax Financial Holdings Ltd, the fourth-largest US asset management firm Fidelity and Australian pension fund Health Employees Superannuation Trust Australia.
Temasek, investing through its subsidiary Aranda Investments Pte Ltd, bought 1.87 million shares worth Rs 97.35 crore. The Norwegian pension fund and Fairfax acquired shares worth Rs 17.24 crore and Rs 32.44 crore, respectively.
Deutsche Bank’s Singapore subsidiary DB International (Asia), the world's largest asset manager BlackRock, Amansa Holdings Pvt Ltd, The Nomura Trust and Banking Co Ltd were among the 13 foreign institutions.
Anchor investors are institutional investors who accept a one-month lock-in period for a sizeable allocation of shares and support a public offering. Their participation highlights investors’ confidence in an IPO and sets a benchmark for the investor community at large.
Indian asset managers participating in the anchor allotment include various schemes of Axis Mutual Fund, Aditya Birla Sun Life Trustee Pvt Ltd, DSP BlackRock Mutual Fund, Edelweiss Trustee Co Ltd, HDFC Trustee Co, IDFC Mutual Fund among 13 mutual funds.
ICICI Securities is seeking a valuation of as much as Rs 16,751 crore ($2.6 billion). The public issue will close on 26 March.
ICICI Bank aims to raise about Rs 4,017 crore ($617 million) at the upper end of the band by selling a total of 77.25 million shares, or a 24% stake. The brokerage firm is not selling any fresh shares.
ICICI Bank will get three years from the date of listing to bring its stake down to 75% or below to meet the Securities and Exchange Board of India’s (SEBI) norms of a minimum 25% public float.
The stock broking unit will become the fourth group company to float an IPO. ICICI Bank had gone public in 1998. Its life insurance arm, ICICI Prudential Life Insurance Co Ltd, went public in September 2016 through a Rs 6,056-crore ($904 million) public offering. Its non-life insurance firm, ICICI Lombard General Insurance Co Ltd, went public in September 2017.
ICICI Securities had filed its draft proposal with SEBI on 15 December. It received regulatory clearance for the IPO on 2 February.
The Mumbai-based company will join listed peers including Edelweiss Financial Services, Motilal Oswal Financial Services, IIFL Holdings Ltd and Emkay Global Financial Services Ltd.
ICICI Securities was incorporated in March 1995. It provides institutional and retail broking, merchant banking, and advisory services to corporates, financial institutions, high net-worth individuals and retail investors in India.
It also operates ICICIdirect.com, an online broking platform to invest in equity, derivatives, currency futures and mutual funds, among other products. It provides research information, stock picks and mutual fund recommendations.