ICICI Securities’ parent considers delisting

27 Jun 2023 , 11:05 AM

In Monday’s trading, ICICI Securities rose more than 11% after parent ICICI Bank said it would consider delisting the broking subsidiary.

Before the firm was listed, the private lender sold shares of ICICI Securities in an initial public offering in March 2018.

However, market participants warn against rushing to buy ICICI Securities shares because the delisting process may not involve cash payouts. It is more likely to be a share swap arrangement, under which, shareholders of ICICI Securities will get shares of ICICI Bank.

In an exchange filing, ICICI Bank stated that on June 29, its board of directors will consider a proposal for the delisting of equity shares of ICICI Securities under a scheme of arrangement with the Bank as per a special provision of the SEBI Regulations, 2021.

Sumit Agrawal, Founder, Regstreet Law Advisors and former SEBI Officer, said, ‘The exchange of ICICI Securities’ equity with ICICI Bank’s shares, enabled by the delisting of ICICI Securities, falls under the special provisions for a subsidiary company getting delisted through a scheme of arrangement, where the listed holding company and the subsidiary company are in the same line of business.”

However, in Tuesday’s trade, shares erased gains of last trading session and was trading 1.88% lower at Rs 610.20, against the previous close of Rs 621.90 on NSE. 

For feedback and suggestions, write to us at [e-mail]