ICICI Securities Share Delisting: Delisting of ICICI Securities has been approved in the company’s board meeting. The country’s fifth largest stock brokerage company ICICI Securities will become a subsidiary of its parent company ICICI Bank after delisting.
After delisting, investors of ICICI Securities will be allotted 67 shares of ICICI Bank for every 100 shares held. Due to various types of regulatory approvals, the delisting process may take 12 to 15 months to complete.
ICICI Securities said in the regulatory filing that there is a lot of synergy between the business of the bank and the company. Consolidation by way of merger is not permitted due to regulatory restrictions on the Bank carrying on equity broking business division. In the company’s board meeting on Thursday, the delisting proposal was approved, according to which ICICI Bank will now issue equity shares to shareholders in lieu of cancellation of equity shares of ICICI Securities.
However, for the delisting of ICICI Securities, approval will have to be obtained from the shareholders, creditors of the company along with ICICI Bank. Apart from this, apart from Reserve Bank of India, NCLT, stock exchanges, other regulatory approvals will have to be taken. Brokerage firms like Zerodha and Groww are dominating the brokerage business these days. ICICI Securities is at the fifth position with 6.8 per cent market share. By the end of May 2023, the company had 2.1 active clients.
The year 2018 saw the IPO of ICICI Securities. The issue price was Rs 520 per share but the share was listed at Rs 431. The reason for the delisting of ICICI Securities is also that the stock was underperforming. After delisting, there has been a slight rise in the stock. On Wednesday, the share of ICICI Securities closed at Rs 614 and the share of ICICI Bank closed at Rs 937.45.
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