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  4. ICICI Securities with over ₹23,000 cr market cap gets approval to delist its shares; here's how brokerage stocks reacted

ICICI Securities with over ₹23,000 cr market cap gets approval to delist its shares; here's how brokerage stocks reacted

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2 min read • Updated: March 28, 2024, 2:06 PM

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Summary

ICICI Securities shareholders will receive 67 shares of ICICI Bank for every 100 shares held. According to an exchange filing, 72% of public shareholders voted in favour of delisting.

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According to an exchange filing, 72 per cent of public shareholders voted in favour of delisting.

ICICI Securities shares declined on Thursday after its shareholders approved a proposal to delist the brokerage firm from the BSE and the National Stock Exchange (NSE). The company will become a wholly owned subsidiary of ICICI Bank after the delisting.

Shares of ICICI securities were trading at ₹717.50, down 3.26%, on the NSE at 11 am. On the other hand, ICICI Bank shares were trading 1.68% higher.

According to the terms of the arrangement, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares held.

ICICI Securities Limited provides broking (institutional and retail), merchant banking, financial product distribution and advisory services.

Barring Motilal Oswal Financial Services, all other brokerage stocks reacted positively to the development.

How brokerage stocks are performing

  • Angel One (+4.09%)
  • Motilal Oswal Financial Services (-0.29%)
  • Anand Rathi Wealth (+1.76%)
  • SMC Global Securities (+1.50%)
  • 5Paisa Capital (+4.14%)
  • IIFL Securities (+2.84%)
  • Dolat Algotech (+1.78%)
  • Geojit Financial Services (+2.48%)
  • Nuvama Wealth Management Ltd (+0.76%)
  • Monarch Networth Capital (+2.47%)

According to an exchange filing, 72% of public shareholders voted in favour of delisting, while 67% of retail investors were against it. The delisting proposal also got the nod of over 83% of institutional and 32% of non-institutional shareholders.

Earlier, Quantum Mutual Fund, a minority stakeholder, had voted against the resolution. It said that the proposal was detrimental to the interests of its unitholders, resulting in net loss of at least ₹6.08 crore.

Meanwhile, Norges Bank Investment Management, the largest public shareholder in ICICI Securities, backed the resolution.

In June 2023, ICICI had proposed delisting of ICICI Securities shares following the board's approval for the draft scheme of arrangement.

In November 2023, the brokerage firm received no objection letters from the National Stock Exchange (NSE) and the BSE for delisting shares.