IPO analysis: Strong prospects for ICICI-Sec, but correlated to markets

Although valuations are rich, most analysts are positive due to rising financialisation of Indian savings

At a time when the stock markets are near all-time highs, many would want to invest in ICICI Securities (I-Sec), the country's largest equity broker since 2013-14, based on brokerage revenue and active customers on the National Stock Exchange.

A leading technology-based securities services provider, it is hitting the primary market with a Rs 40-billion Offer for Sale by its promoter, ICICI Bank. However, the Initial Public Offer (IPO) valuations are rich and leave little for immediate investor gain. While the high correlation between its financial performance and market trends is a potential risk.

Strong business

I-Sec was among the