ICICI Securities delisting: Shares fall 3% as 72% of public shareholders vote in favour of delisting
ICICI Securities delisting: Last year, in June, ICICI Bank approved a proposal to delist ICICI Securities and become a wholly-owned subsidiary of the bank after delisting.
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ICICI Securities delisting: Shares of ICICI Securities and ICICI Bank were on investors' radar on Thursday, March 28, given the former's delisting news. As per reports, 72 per cent of public shareholders have voted in favour of the delisting, while 68 per cent of individual investors have voted against it. Further, 84 per cent of institutional investors are in favour of the delisting of the scrip of the retail stockbroking firm.
Additionally, the scrips will also be in the news, as BSE has sought clarification from ICICI Bank regarding ICICI Securities' delisting news. "There are reports in the media that retail shareholders of ICICI Securities Limited were being contacted by the employees of ICICI Bank in connection with the delisting of ICICI Securities. To verify the accuracy or otherwise of the information reported in the media, the exchange has written to both companies to provide clarification on the same," BSE said.
At 09:33 AM, shares of ICICI Securities traded 2.91 per cent lower at Rs 719.50 apiece while ICICI Bank was up 1.33 per cent at Rs 1,098.40 on the BSE.
ICICI Securities: A little background
Last year, in June, ICICI Bank approved a proposal to delist ICICI Securities and become a wholly-owned subsidiary of the bank after delisting. ICICI Securities, promoted by ICICI Bank, is the country's leading retail-led equity franchise, distributor of financial products, and investment bank.
"Pursuant to the scheme, public shareholders of ICICI Securities would be allotted 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities," the filing said.
As of March 31, 2023, ICICI Bank held 74.85 per cent of the equity shares of ICICI Securities, and the balance 25.15 per cent of equity shares was held by the public, as per a PTI report.
"While there are business synergies between the bank and the company, a consolidation by way of the merger is not permissible on account of regulatory restrictions on the bank from undertaking securities broking business departmentally," ICICI Securities had said in the filing.
The acquisition is likely to be completed in the next 12–15 months after various regulatory approvals, it added.
ICICI Securities: FII and DII holdings as of December 31, 2023
As per Zee Business Research, 134 FPIs have a 10.33% stake in the company.
DIIs hold a 6.35% stake
>> Seven life insurance companies have a 3.56 per cent stake (LIC has a 2.58 per cent stake);
>> 22 Mutual Funds have a 2.12 per cent stake;
>> 9 AIFs have a 0.67 per cent stake.
Public 8.55%
Total: 25.23%
Promoter ICICI Bank Limited has a 74.77 per cent stake.
ICICI Securities IPO details
The IPO ran between March 22, 2018 and March 26, 2018.
Through a share swap, 67 shares of ICICI Bank will be available for 100 shares of ICICI Securities.
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