ICICI Bank gets 'no objection' letters from exchanges for delisting ICICI Securities
ICICI Bank on Wednesday said that it has received 'no objection' letters from the BSE and the National Stock Exchange for delisting shares of ICICI Securities.
ICICI Securities is a subsidiary of ICICI Bank, wherein the latter holds around 75% stake in the former.
In June, the private sector lender had proposed delisting shares of ICICI Securities following board approval for the draft scheme of arrangement.
The delisting of shares of ICICI Securities will be done through a share swap, wherein public shareholders of the brokerage will be allotted 67 shares of ICICI Bank for every 100 shares held.
Following the delisting, ICICI Securities will again become a 100% subsidiary of ICICI Bank.
The decision to make ICICI Securities a wholly-owned subsidiary through delisting was to drive synergies between the two entities, ICICI Bank had earlier said.
The bank did not intend to monetise its stake in the brokerage firm by taking it below 75%.
ICICI Securities made its debut on the exchanges in April 2018. ICICI Bank had sold part of its stake in the brokerage firm in the IPO.
In the last five years, the stock has given more than 150% returns to investors.
On Wednesday, shares of ICICI Securities ended 0.5% down at Rs 664.45 on the NSE, while those of ICICI Bank closed 1.5% higher at Rs 939.60.
The brokerage reported robust earnings for the quarter ended September 2023 driven by the strong momentum in both primary and secondary markets. Consolidated revenue from operations rose more than 45% on year to Rs 1,249 crore, and the net profit increased by 41% to Rs 424 crore.
