IPO Note: ICICI Securities Ltd - SUBSCRIBE - Kotak

- ICICI Securities 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. The company has been the largest equity broker in India since fiscal 2014 by brokerage revenue and active customers in equities on the National Stock Exchange (Source: CRISIL), powered by their significant retail brokerage business, which accounted for 90.5% of the revenue from their brokerage business (excluding income earned on the funds used in the brokerage business) in fiscal 2017. As of September 30, 2017, ICICIdirect, their award winning proprietary electronic brokerage platform, had approximately 3.8 million operational accounts of whom 0.7 million had traded on NSE in the preceding 12 months. Since inception, the company has acquired a total of 4.4 million customers through this platform as of September 30, 2017.

- VALUATIONS: At the higher end of the issue price of Rs 520 per share, the stock is being offered at 31.5x 9MFY18 annualized earnings. In the past two years, the broking industry in India has witnessed growth in terms of increase in new accounts, higher income from distribution business and sharp rise in primary market transactions. Activities in the capital markets business will remain a direct beneficiary of an improving macro environment, shift from physical assets to financial assets and stable government and its policies. Given ICICI Securities presence across the different segment and its customer base helps the company to explore new opportunities. We recommend Subscribe to the issue.

Source : Equity Bulls

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