Sebi seeks details from ICICI Pru on ISec IPO: Report

NEW DELHI: ICICI Securities ruled flat on Tuesday after a Mint report suggested that the market watchdog Sebi has sought details of a large investment made by ICICI Prudential Mutual Fund in the brokerage's recently-concluded IPO.

ICICI Securities IPO was subscribed 78 per cent. The portion reserved for high net worth individuals remained undersubscribed at 35 per cent while the QIB portion was fully subscribed. The retail quota got 88 per cent bids despite the fact that ICICI Securities has 4 million retail clients.

One of the two people in the know told Mint that queries have been sent to stock exchanges, merchant bankers and Registrar and Transfer Agents. "This is based on the concern that a related party, ICICI MF, has taken a massive exposure to ICICI Securities during its IPO," the sources said.


The Mint report though quoted an ICICI MF spokesperson as saying "the investments the mutual fund carried out were line with the regulatory guidelines and established processes".

"The quantum of our investments that has been made in the IPO is in line with investments made in other primary issues where we have invested,” the spokesperson told Mint.