ICICI to list four subsidiaries: Kamath

The securities arm will be the first of the lot.

ICICI Bank will list at least four of its subsidiaries, starting with its brokerage arm ICICI Securities, and the process would commence within six months, Managing Director and Chief Executive Officer K V Kamath said today.

Asked whether the first of the subsidiaries would hit the market in 3-6 months, Kamath said in an interview, "I would think that six months is a fair expectation... We have not yet taken board approval."

Noting that ICICI Securities could be the first of the lot to hit the capital market, he said it could be soon followed by two insurance arms "" life insurance unit ICICI Prudential and general insurance arm ICICI Lombard "" and the bank's housing finance arm.

Kamath said that listing of insurance and mutual fund subsidiaries would be subject to the previously proposed holding company for these businesses not coming through. The proposal for this is awaiting clearance from the Reserve Bank of India.

When asked whether the bank would look at listing other subsidiaries as well, Kamath said there could be two more probable listings "" that of mutual fund arm and private equity business ICICI Ventures, but they could take some time.

"At current levels, we are undervalued... If you look at embedded value, clearly there is scope for valuation to look different... Value is visible in insurance and asset management company, while there is value embedded in securities and home loan subsidiaries," Kamath said.

"Every company needs to consider unlocking of value at various points of time... At this point of time, it would be appropriate to start considering opportunities to unlock (value in subsidiaries)."

While declining to make any forward-looking statement regarding the possible valuations of the subsidiaries ICICI Bank is looking to list separately, Kamath said these issues would be deliberated in due course.

The bank would seek approval from the Board and other statutory requirements at appropriate time.