Last Updated: November 30, 2023, 14:26 IST
Shares of ICICI Securities Ltd prolonged a loss to the fifth day in a row at Rs 657 on November 30 after the NSE and BSE authorised the draft scheme of association to delist its fairness shares. In the previous 5 days, the inventory has misplaced 3 per cent as towards a 1 per cent rise within the benchmark Sensex.
The inventory of ICICI Securities has soared over 35 per cent up to now this yr.
In a submitting to BSE, ICICI Securities mentioned the scheme of association is topic to receipt of requisite approvals from the shareholders and collectors of ICICI Bank and the corporate, National Company Law Tribunal and different regulatory and statutory authorities underneath relevant legislation in addition to compliance with the phrases and situations.
To recall, a draft scheme of association for delisting of ICICI Securities was introduced on June 29, in line with which ICICI Bank would difficulty its shares to the ICICI Securities’ public shareholders in lieu of cancellation of their shares in ICICI Securities, thereby making the broking agency a completely-owned subsidiary of ICICI Bank.
On July 15, ICICI Securities filed functions with NSE and BSE in reference to the proposed scheme of association. ICICI Bank acquired of approval from the Reserve Bank of India (RBI) relating to the identical on November 9, topic to sure situations.
“In this regard, we would like to inform you that the Bank is in receipt of observation letters communicating ‘No Objection’ dated November 28, 2023 and November 29, 2023 from National Stock Exchange of India Limited and BSE Limited respectively. The copies of said letters are being made available on the website of the bank,” ICICI Bank mentioned.
Explaining the rationale behind the choice, ICICI Bank on June 26 mentioned, “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.”
In the September-ended quarter (Q2FY24), ICICI Securities reported a consolidated web revenue of Rs 423.63 crore for the September quarter of the present monetary yr, a progress of 41.01 per cent from the yr-in the past interval.
Revenue from operations rose to Rs 1,249 crore, up 45.49 per cent from Rs 858.46 crore within the yr-in the past quarter.
In the method of delisting, shareholders of the corporate shall be allotted 67 shares of ICICI Bank for each 100 shares held by them, the corporate had mentioned earlier.
