ICICI Securities will become a wholly owned subsidiary of its parent company ICICI Bank after delisting
ICICI Securities shares ended over 1.29 per cent down at Rs 606 on BSE on Friday after the company approved the draft scheme of arrangement for the delisting of equity shares and announced the share swap ratio. The stock slipped as low as 3.4 per cent to Rs 593.40 per share of the BSE.
On Thursday, the company said that it will become a wholly owned subsidiary of its parent company ICICI Bank after delisting. The acquisition is expected to be completed within the next 12-15 months after various regulatory approvals.
ICICI Bank has valued the investment firm’s shares at Rs 628.09 per share, a premium of 2.25 per cent to Wednesday’s closing price, and over 11 per cent to its undisturbed price before the plan was announced on Sunday.
"The scheme of arrangement involves the cancellation of ICICI Securities shares and the issue of ICICI Bank equity shares in exchange based on the share exchange ratio," the bank said in a statement to exchanges.
ICICI Bank owned a 74.85 per cent stake in ICICI Securities and the remaining was with the public.
For every 100 equity shares of ICICI Bank, the public shareholders would get 67 equity shares with a face value of Rs 2 apiece of ICICI Bank.
In April 2018, ICICI Bank listed ICICI Securities in an initial public offering (IPO) selling shares at Rs 520 each.
The stock underperformed the broader market for much of the time since listing.
The draft scheme of arrangement for delisting ICICI Securities was approved at the board meeting on 29 June, following which ICICI Bank will issue equity shares to public shareholders of the domestic brokerage in place of cancellation of their equity shares in the company.