Distribution biz registering steady growth: ICICI Sec

Distribution biz registering steady growth: ICICI Sec

Kolkata, Mar 19 (PTI) ICICI Securities Ltd today said its financial products distribution business is registering a steady growth although its share of the revenue is at 24 per cent now.

"Distribution business currently contributes about 24 per cent to the companys total revenue amd is growing at a faster pace than brokerage." ICICI Securities executive director Ajay Saraf said.

ICICI Securities registered a total revenue of Rs 1,404 crore in FY17 with a profit of Rs 338.59 crore.

"Brokerage remains to be the largest with 64 per cent and merchant banking contribute 10 per cent," he said at the roadshow of the IPO of the company.

The company will continue to leverage the 3.9 million customer base of brokerage for cross-selling.

Saraf said the company remains optimistic in growth of all businesses. In the six months since margin funding was allowed, the book has grown to Rs 600 crore. Staying afloat with the trend it has also commenced robo advisory.

Robo advisory is goal-based advisory without manual intervention and is based on algorithms.

ICICI Bank is sponsoring 7.72 crore shares of Rs 5 each in the offer for sale in the IPO, representing 24 per cent of the paid-up capital.

The price band has been fixed at Rs 519-520 per share of Rs 5 each. The issue is worth Rs 4,017 crore in the upper band of Rs 520 a share. The issue will open on March 22.

The average cost of each share for ICICI Bank is Rs 5.82 per share. PTI BSM JM