ICICI Bank gets green signal from exchanges to delist ICICI Securities

30 Nov 2023 , 10:17 AM

ICICI Bank said on Wednesday that it has got ‘no objection’ letters from the BSE and the National Stock Exchange on delisting of ICICI Securities shares.

ICICI Securities is a subsidiary of ICICI Bank, in which the latter owns about 75% shares in the former.

Following board approval for the draft arrangement scheme, the private sector lender proposed delisting ICICI Securities shares in June.

The delisting of ICICI Securities shares will be done by a share swap, in which public owners of the brokerage would get 67 shares of ICICI Bank for every 100 shares held.

Following the delisting process, ICICI Securities will again become a wholly-owned subsidiary of ICICI Bank.

ICICI Bank has previously stated that the decision to delist ICICI Securities was made to develop synergies between the two firms.

ICICI Securities debuted on the stock markets in April 2018. In the IPO, ICICI Bank sold a portion of its ownership in the brokerage company. Over the previous five years, the stock has returned more than 150% to investors.

The brokerage recorded good profitability for the fiscal quarter ending September 2023, owing to strong performance in both primary and secondary markets. Consolidated operating revenue surged by more than 45% year-on-year to Rs 1,249 crore, while net profit jumped by 41% to Rs 424 crore.

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