ICICI Securities shares slides as BSE and NSE approve delisting

In a move impacting ICICI Securities' stock performance, both the NSE and BSE recently approved a draft scheme to delist its equity shares. As of November 30, the stock continued a five-day downturn, trading at ₹657. Over this period, it faced a 3% decline while the benchmark Sensex saw a 1% rise.

ICICI Securities, despite the recent setback, has seen a 35% surge in its stock value this year. A crucial development occurred on November 30 when the NSE granted 'no objection' to ICICI Securities for filing the draft scheme with the National Company Law Tribunal.

ICICI Bank will issue equity shares to the public, making ICICI Securities its wholly-owned subsidiary. However, the finalization of this arrangement is contingent on shareholder and creditor approvals for both ICICI Bank and ICICI Securities. The National Company Law Tribunal's nod and compliance with regulatory requirements are also essential steps in this process.

Earlier Developments

The initiative to delist ICICI Securities was announced by ICICI Bank on June 26, and on November 9, it received approval from the Reserve Bank of India (RBI) to make ICICI Securities its wholly-owned subsidiary. On June 26, ICICI Bank clarified that the decision to delist ICICI Securities was based on the fact that ICICI Securities operates with minimal capital needs. The company generates enough funds internally to support its growth, eliminating the need for ICICI Bank to inject additional capital into the business.

On November 29, ICICI Bank received approval from both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to delist ICICI Securities shares. The bank's notification indicated that it obtained 'No Objection' letters from both exchanges on November 28 and November 29.

In the recently concluded September quarter (Q2FY24), ICICI Securities reported a consolidated net profit of ₹423.63 crore, reflecting 41.01% growth from the same period last year. Revenue from operations rose to ₹1,249 crore, marking a 45.49% increase from ₹858.46 crore in the year-ago quarter.

Final Words

In the last month, the stock price of ICICI Securities has shown a positive trend, with an increase of nearly 5%. Over the past six months, investors have enjoyed a return of 34%. Looking at the one-year performance, the stock has delivered a commendable 26% return. Zooming out to a five-year horizon, ICICI Securities has provided an impressive return of 161% to its investors.