The board of ICICI Bank will meet on June 29 to discuss delisting shares of ICICI Securities

26 Jun 2023 , 12:22 PM

After ICICI Securities shares increased 8.9% intraday on Friday to a high of Rs. 572.70 on the NSE, the board made its decision.

The board of ICICI Bank has scheduled a meeting for June 29 to discuss the possibility of delisting the company’s shares.

On Thursday, June 29, 2023, ‘a meeting of the board of directors is scheduled to be held to consider a proposal for delisting of equity shares of the company pursuant to a scheme of arrangement with ICICI Bank Ltd, listed holding company,’ the company stated.

As of March 2023, promoter ICICI Bank owned 74.85% of the retail and institutional brokerage division.

After ICICI Securities shares rose 8.9% intraday on Friday to a high of Rs. 572.70 on the NSE, the board made its decision. Following the news, the stock rose 15% from Friday’s close to start at a 52-week high of Rs 647.00.

The Rs 4,000 crore initial public offering (IPO) of ICICI Securities in April 2018 experienced a weak response and was 78% undersubscribed. The stock debuted below its Rs 520 issue price and has largely underperformed the benchmark indices ever then.

Despite the fact that broking revenue has dramatically decreased because of fewer primary issuances, analysts have claimed that the corporation is struggling because of its strong revenue dependency on more generalized equities markets and cash volumes. Through tools and products for the derivatives and margin trading fund (MTF) divisions, as well as increasing distribution of other financial services including loans and insurance, the company has been attempting to diversify its revenue.

For the fourth quarter of FY23, ICICI Securities recorded a consolidated net profit of Rs 263 crore, a 23% year-over-year decrease. In comparison to the same quarter last year, operating revenue for the quarter was Rs 885 crore as opposed to Rs 892 crore. Interest income increased by 35% YoY to Rs 287 crore while brokerage income increased to Rs 310 crore.

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