ICICI Securities IPO had received a very poor response where for the first time in three years, issue was subscribed less than 80%. It was institutional investors who bailed out the issue which was given the cold shoulder by HNIs and retail investors.

The institutional portion was subscribed 1.04 times while HNIs was 0.88 times and retail was 0.36 times. Shareholders of ICICI Bank portion was subscribed just 0.34 times.

Yet, the issue was priced at the upper price band of the IPO of Rs.520 and it got listed today on the BSE at Rs.431.10, a discount of over 17%. This did not come as a surprise at all given this poor response to IPO and the current negative vibes for ICICI Bank.

In our New Issue Analysis, we had stated, “ICICI Securities’ business is heavily market dependent and hence cyclical in nature. Since more diversified plays are ruling at lower valuations, ICICI Securities IPO is not attractively priced, and hence can be skipped.”