ICICI Bank on Monday said in a board meeting on June 29 it will consider a proposal for delisting of ICICI Securities, a subsidiary of the bank, the company announced through an exchange filing. The delisting will be done via scheme of arrangement and it will be through share swap instead of cash payout.
The announcement comes days after the brokerage firm posted a consolidated net profit of Rs 263 crore in the quarter that ended in March. This is 23 per cent down from Rs 340 crore the company posted in the corresponding period of last year.
ICICI Securities shares
The shares of ICICI Securities on Monday at 9:47 am IST were trading at Rs 627.75, up by 11.49 per cent. The stocks are now trading above the IPO price of Rs 520, but this was only after it saw a 7 per cent gain on Friday. The shares in the last three days have seen a jump of 12 per cent and Friday's gains were the highest single day gain in over a year.
The shares were listed in April 2018 and the IPO had received poor response as it was subscribed 78 percent during the three-day bidding process.
ICICI Securities ESOP
ICICI Securities on June 20 announced the allotment of 4,020 equity shares to employees as stock option under ICICI Securities Limited - Employees Stock Option Scheme - 2017.
