ICICI Securities, a company of the ICICI Group, one of the country’s largest business conglomerates, has sought permission from shareholders to delist the stock from exchanges. About 72 percent of the company’s shareholders have supported the delisting of ICICI Securities from the stock market. However, most of those opposed to the proposal were retail investors.
Institutional investors contributed.
ICICI Securities’ information to the exchanges regarding the delisting of the shares said that 83.8 per cent institutional investors have supported the proposal to delist the company from the stock market. At the same time, 67.8 percent of non-institutional investors voted against the proposal.
There will be a merger with ICICI Bank.
ICICI Securities will be delisted and merged with the group’s parent company ICICI Bank. After the merger with ICICI Bank, for every 100 shares of ICICI Securities, 67 shares of ICICI Bank will be issued to shareholders. As of December 2023, domestic and foreign institutional investors hold 16.68 percent stake in the company. The remaining 8.55 percent shares are held by non-institutional investors.
Regarding the merger, ICICI Securities said that at present, competition in the market is increasing and the regulatory environment is changing. If the company continues to be listed separately, it may adversely affect its business.
ICICI Securities Share
Following the announcement, shares of ICICI Securities fell 4.2 percent to Rs 710. Later, paring some losses, it closed at Rs 729, down 1.63 from its previous close. However, shares of ICICI Bank rallied and closed up 1.13% at Rs 1,096. It touched a high of 1,105 and a low of 1,085 during the day’s trade.
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