The board of ICICI Bank and ICICI Securities on Thursday approved the delisting of the latter to become a wholly owned subsidiary of ICICI Bank, the company announced through an exchange filing. Public shareholders that hold 100 equity shares would be allotted 67 equity shares of ICICI Bank.
The company in the exchange filing said, "The scheme is subject to receipt of requisite approvals from ICICI Bank and the company's shareholders and creditors, Reserve Bank of India, National Company Law Tribunal, stock exchanges and other regulators and statutory authorities."
On June 28, ICICI Securities stock closed at Rs 615.95 whereas ICICI Bank closed at Rs 939.95 on the NSE. However, on Friday the shares of ICICI Bank fell to Rs 933.70, down by 0.40 per cent and the shares of ICICI Securities was at Rs 608, down by 0.96 per cent.
Why was ICICI Securities delisted?
Giving an explanation to the decision ICICI Bank said, "ICICI Securities is a low capital consuming business and the internal accruals are more than adequate to fund business growth. ICICI Bank is not expected to be required to make additional capital infusion into the company."
Another reason for the deslisting is that the securities broking business is inherently cynical and it is dependent on macro-economic environment and buoyancy in the equities market.
ICICI Bank's stake in ICICI Securities
ICICI Bank as of March 2023 held 74.85 per cent stake in ICICI Securities. The process for delisting is expected to be complete in the next 12 to 15 months.
