This Stockbroker is selling 20% of its Stake through an IPO

As Reported by A Digital Blogger in December 2017, ICICI Direct is finally coming up with its IPO soon. Check the video above to see what we reported a couple of months back about this full-service stockbroker coming up with the plans of an IPO.

ICICI Direct has finally got the confirmation from SEBI and it is now going to launch ₹3000 Crore t0 ₹4000 Crore worth of initial public offering in few months.

ICICI Bank, the parent brand of the stockbroker, diluted part of its holding in ICICI Lombard General Insurance Company’s IPO last year.

The broker filed its draft papers with the Securities Exchange in December last year and on 2nd of February, the broker has received “observations” from the regulatory body.

Looking at the DRHP (Draft Red Herring Prospectus) document, the overall public issue has 64,428,280 equity shares to offer which basically converts to 20 percent stake in the company’s valuation.

Furthermore, the offer comprises of 32.21 lakh shares for Individual and shareholders who are from Hindu Undivided Family (HUF) bracket of ICICI bank.

By the way, it looks the IPO is going to be placed in the range of ₹3000 Crore t0 ₹4000 Crore setting the broker’s overall valuation in the range of ₹15000 Crore t0 ₹20000 Crore.

The broker has set out its objectives for the offer as well, that include:

  • Enhancing the brand image of the company
  • Increase the visibility of the broker amongst the potential client base
  • Provide liquidity to existing shareholders

The IPO issue will be managed by SBI Capital MarketsEdelweiss Financial Services, CLSA India, IIFL Holdings, Citigroup Global Markets India and DSP Merrill Lynch.

Information on the timelines of this IPO along with the A Digital Blogger review will be published soon.

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