ICICI weighs listing broking arm ICICI Securities
The country’s largest private sector bank, ICICI is exploring options of listing its investment banking and broking subsidiary, ICICI Securities.
By TNN |
MUMBAI: The country’s largest private sector bank, ICICI is exploring options of listing its investment banking and broking subsidiary, ICICI Securities. ICICI Securities is a leading investment bank, which underwrites issues worth about Rs 2,000 crore annually. The company, which is a 100% subsidiary of the bank, also owns ICICIDirect, an online trading arm of the bank.
I-Sec had reported a net profit of Rs 133 crore for the year ended March 31, 2007, a dip from the previous year’s figure of Rs 148 crore. Its total income for 2006-07 stood at Rs 425 crore, as against an expenditure of Rs 235 crore. The broking firm has total assets worth Rs 1,523 crore.
The bank convened an analyst meet on Monday to give a briefing on the performance of its subsidiaries. The bank’s spokesperson said, “ICICI is looking at various options and explores all opportunities for its subsidiaries on an ongoing basis. Any decision on a particular subsidiary will be conveyed at an appropriate juncture.”
More recently, the bourses saw many leading broking firms hitting the equity markets to raise funds. These include companies such as Religare Enterprises, Motilal Oswal and Edelweiss Capital, apart from the early birds, Indiabulls and India Infoline.
Till 1999, ICICI Securities was a joint venture firm between ICICI Bank and JP Morgan Chase Bank. After the demerger, JP Morgan Chase rolled out its independent bond trading outfit, while ICICI Bank purchased JP Morgan’s stake in ICICI Securities.
While equity markets have been on a bullish mode for the past several months, in very recent times, even the debt market is seen recovering with a change in the interest rate cycle. Having equities and debt under the same platform helps maintain a balance and also helps the parent institution make the most of the situation.
Both, in a situation where equities rule the roost and in phases of a boom in the debt market, such a combination allows the bank to gain out of trade in both market segments.
ICICI Securities has presence in segments such as corporate finance, fixed income and equities. The bank’s subsidiary is based in Mumbai and has offices in New Delhi, Chennai, Kolkata, New York, London and Singapore.
ICICI Securities also has a US subsidiary, ICICI Securities Inc, which is a member of the National Association of Securities Dealers (NASD). It is also registered with the Financial Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS) to carry out corporate advisory services.
I-Sec had reported a net profit of Rs 133 crore for the year ended March 31, 2007, a dip from the previous year’s figure of Rs 148 crore. Its total income for 2006-07 stood at Rs 425 crore, as against an expenditure of Rs 235 crore. The broking firm has total assets worth Rs 1,523 crore.
The bank convened an analyst meet on Monday to give a briefing on the performance of its subsidiaries. The bank’s spokesperson said, “ICICI is looking at various options and explores all opportunities for its subsidiaries on an ongoing basis. Any decision on a particular subsidiary will be conveyed at an appropriate juncture.”
More recently, the bourses saw many leading broking firms hitting the equity markets to raise funds. These include companies such as Religare Enterprises, Motilal Oswal and Edelweiss Capital, apart from the early birds, Indiabulls and India Infoline.
Till 1999, ICICI Securities was a joint venture firm between ICICI Bank and JP Morgan Chase Bank. After the demerger, JP Morgan Chase rolled out its independent bond trading outfit, while ICICI Bank purchased JP Morgan’s stake in ICICI Securities.
While equity markets have been on a bullish mode for the past several months, in very recent times, even the debt market is seen recovering with a change in the interest rate cycle. Having equities and debt under the same platform helps maintain a balance and also helps the parent institution make the most of the situation.
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Both, in a situation where equities rule the roost and in phases of a boom in the debt market, such a combination allows the bank to gain out of trade in both market segments.
ICICI Securities has presence in segments such as corporate finance, fixed income and equities. The bank’s subsidiary is based in Mumbai and has offices in New Delhi, Chennai, Kolkata, New York, London and Singapore.
ICICI Securities also has a US subsidiary, ICICI Securities Inc, which is a member of the National Association of Securities Dealers (NASD). It is also registered with the Financial Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS) to carry out corporate advisory services.
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