Explorer

ICICI Securities Announces Delisting Plans, To Become Wholly-Owned Subsidiary Of ICICI Bank

As part of this transition, existing public shareholders of ICICI Securities will receive 67 equity shares of ICICI Bank for every 100 equity shares they currently hold in the brokerage firm. 

Brokerage firm ICICI Securities on Thursday announced that it will delist from the stock exchanges and will become a wholly-owned subsidiary of ICICI Bank. As part of this transition, existing public shareholders of ICICI Securities will receive 67 equity shares of ICICI Bank for every 100 equity shares they currently hold in the brokerage firm, the firm announced. 

"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 regulatory and statutory authorities," the exchange filing clarified further.

ICICI Bank, explaining the rationale behind the decision, 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."

"With ICICI Sec as a 100 perc ent subsidiary, it is expected that both entities would be able to better capitalize on the synergies in line with the Customer 360 focus of the bank," the filing added.

Also Read: Aadhaar-Based Face Authentication Transactions Reaches All-Time High Of 10.6 Million In May

As of March 2023, ICICI Bank already owned a 74.85 per cent stake in ICICI Securities. The delisting process is anticipated to take approximately 12-15 months to complete.  On June 28, the closing price of ICICI Securities' stock on the NSE was Rs 615.95, while ICICI Bank closed at Rs 939.95.

As per a MoneyControl report, considering these values, the share swap ratio suggests that ICICI Securities' shareholders will receive a mere 2 per cent premium.

Another reason mentioned for the decision to delist is the inherent cyclical nature of the securities broking business. This industry is heavily influenced by the macroeconomic environment and the overall performance of the equities market.

ICICI Securities holds a prominent position as India's top retail-oriented equity franchise, financial product distributor, and investment bank. Established in May 1995, the company has been steadily expanding its operations by attracting a growing client base and offering a diverse range of services. As of March 31, 2023, ICICI Securities recorded a net profit of Rs 1,118 crore and possessed total assets worth Rs 15,569 crore.
View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

'Scott Boland Special' Decimates India As Sydney Test Day 1 Belongs To Australia | Day Report Inside
'Scott Boland Special' Decimates India As Sydney Test Day 1 Belongs To Australia | Day Report Inside
Constable's Teen Son Ploughs Through Crowd Of Sikh Devotees In Jaipur, Mob Destroys His Thar: VIDEO
Constable's Teen Son Ploughs Through Crowd Of Sikh Devotees In Jaipur, Mob Destroys His Thar: VIDEO
Anna University Sexual Assault: Tamil Nadu BJP Mahila Morcha Members, Khushbu Sundar Detained During Protest
Anna University Sexual Assault: Tamil Nadu BJP Mahila Morcha Members, Khushbu Sundar Detained During Protest
MP: Police Lathicharge Protestors Opposing Shifting Of Toxic Waste From Union Carbide Factory
MP: Police Lathicharge Protestors Opposing Shifting Of Toxic Waste From Union Carbide Factory
Advertisement
ABP Premium

Videos

Police Lathi Charge on Locals in Madhya Pradesh's DharDelhi Election: PM Modi to Launch Multi-Crore Development Projects, Including Flats and WTCDelhi Election: PM Modi to Announce Crores Worth Development Projects, including Flats and WTCBreaking News: Plane Crashes into Building in California, 2 Dead, 18 Injured

Photo Gallery

Embed widget