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ICICI Securities to become a 100% subsidiary of ICICI Bank Upon Delisting Via Share Swap Deal

ICICI Securities will delist and become a wholly-owned subsidiary of ICICI Bank.

ICICI Securities will delist from the stock exchanges and become a wholly-owned subsidiary of its parent company ICICI Bank, the board of directors announced after the meeting held on Thursday.

The board of ICICI Bank approved the draft scheme of arrangement for the delisting of ICICI Securities’ equity shares by issuing equity shares of the bank to the public shareholders upon the cancellation of their equity shares.

Based on several valuation reports, public shareholders of ICICI Securities would be allotted 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities. 

ICICI Bank held 74.85% of the equity shares of ICICI Securities as of March 31, 2023, and the public held the balance of 25.15% of equity shares. The company said in an acquisition filing that the acquisition is likely to be completed in the next 12-15 months after approvals.

The scheme is subject to approvals from the shareholders and creditors of the bank and company, the Reserve Bank of India (RBI), the National Company Law Tribunal, BSE Limited and the National Stock Exchange of India Limited and other statutory and regulatory authorities, under applicable law. 

Shares of ICICI Securities were trading at Rs 602.95, 1.78% lower than the previous close price. While the parent firm, ICICI Bank, saw its shares traded at Rs 934.4 per share, down 0.3% on Friday. 

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