ICICI Securities falls after BSE, NSE approval to delist shares

In the past five days, the stock is down 3 percent as against 1 percent rise in the benchmark Sensex

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Shares of ICICI Securities extended a downturn to the fifth day in a row at Rs 657 on November 30 after the NSE and BSE approved the draft scheme of arrangement to delist its equity shares. In the past five days, the stock has lost 3 percent as against a 1 percent rise in the benchmark Sensex.

The stock of ICICI Securities has soared over 35 percent so far this year.

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In an exchange filing on November 30, the company notified that the NSE has conveyed its 'no objection' to ICICI Securities to file the draft scheme of arrangement with National Company Law Tribunal.

ICICI Bank will issue ICICI Securities equity shares to the public, thereby making ICICI Securities a wholly owned subsidiary.

"The scheme of arrangement is subject to receipt of requisite approvals from shareholders and creditors of ICICI Bank and ICICI Securities. It will need the nod from National Company Law Tribunal and other regulatory and statutory authorities under the applicable law as well as compliance with the terms and conditions as mentioned in the aforesaid letters received from NSE and BSE," said the filing.

Earlier, on November 9, ICICI Bank received an approval from the Reserve Bank of India (RBI) to make ICICI Securities its wholly owned subsidiary. The lender had announced plans of delisting ICICI Securities on June 26.

Explaining the rationale behind the decision, ICICI Bank on June 26 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."

Also read: ICICI Securities Q2 result: Net profit zooms 41% to Rs 424 crore

In the September-ended quarter (Q2FY24), ICICI Securities reported a consolidated net profit of Rs 423.63 crore for the September quarter of the current financial year, a growth of 41.01 percent from the year-ago period.

Revenue from operations rose to Rs 1,249 crore, up 45.49 percent from Rs 858.46 crore in the year-ago quarter.

In the process of delisting, shareholders of the company will be allotted 67 shares of ICICI Bank for every 100 stocks held by them, the company had said earlier.

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