Shares of ICICI Bank jumped 4.41 percent to close at Rs 409.75 while those of ICICI Securities ended with a mild gain of 0.21 percent at Rs 492 on BSE on August 28 after the bank said it had sold 6,442,000 shares or 2 percent stake of ICICI Securities for Rs 310 crore via open market transaction.
After the share divestment, ICICI Bank now holds 77.22 percent stake as of June quarter in ICICI Securities.
This sale was to meet SEBI guidelines of 25 percent minimum public shareholding requirement, the lender said in a notice to BSE.
ICICI Securities Limited (I-Sec) is a subsidiary of ICICI Bank. It offers services like broking, distribution of financial products, wealth management and investment banking.
As of June 30, 2020, ICICI Bank held 79.22 percent equity holding (25,52,16,095 shares) in ICICI Securities, as per data on BSE.
As per Sebi norms, once a company is listed, its promoters are required to bring down their shareholding to 75 percent within a stipulated period to meet the minimum public float requirement of 25 percent.
The Board of Directors of the bank had approved the sale of up to 6,442,000 equity shares of face value Rs 5 each of ICICI Securities, representing up to 2 percent of its issued and paid-up equity share capital, through an open market sale.