ICICI Securities Shares Tumble Over 6% As NCLT Clears Delisting Path

The shares of ICICI Securities Limited on Wednesday, August 21, took a hit, declining by over 6 per cent after the Mumbai bench of the National Company Law approved the delisting plan.

Following this, the shares of ICICI Securities at 2:06 pm IST were trading at Rs 793.30 apiece, down 6.48 per cent.

The National Company Law Tribunal dismissed objections raised by Quantum Mutual Fund and minority investor Manu Rishi Gupta, clearing the way for ICICI Securities to become a wholly-owned subsidiary of ICICI Bank Ltd.

The shares of the company in the early trade on Wednesday opened at Rs 846.00 per share. The stocks touched a day-low level of Rs 793.00 per share on the National Stock Exchange.

ICICI Securities Ltd. had a previous close of Rs 848.25 on Tuesday, August 20.

During intraday, today, its share price fluctuated within a range of Rs 793.00 to Rs 862.95.

Over the past year, the stock has traded between Rs 607.85 and Rs 882.90. The company’s market capitalisation stands at Rs 257.50 billion, with an average trading volume of 542.14K shares.

It currently has a P/E ratio of 13.24 and offers a dividend yield of 3.65 per cent.

The Delisting Plan

Under the approved plan, shareholders of ICICI Securities will receive 67 ICICI Bank shares for every 100 shares they hold. The scheme, which had already secured the backing of 93.8 per cent of ICICI Securities’ equity shareholders, is part of a broader strategy by ICICI Bank to consolidate its broking arm.

The delisting proposal was first floated in June 2023, and by March 2024, 72 per cent of the minority shareholders had voted in favour of the plan.

With NCLT’s approval, ICICI Securities is set to merge fully into ICICI Bank, simplifying its corporate structure and streamlining operations

Despite the majority’s support, the delisting was not without controversy. Quantum Mutual Fund, which owns 0.08 per cent of ICICI Securities, and individual investor Manu Rishi Gupta, holding a 0.002 per cent stake, raised objections, primarily questioning the fairness of the share swap ratio and the overall valuation.