ICICI Securities to become 100% subsidiary of ICICI Bank after delisting

ICICI Securities on Thursday announced that it will become a wholly-owned subsidiary of ICICI Bank upon delisting. The company said that its board of directors has approved a draft scheme of arrangement for the delisting of the company’s equity shares.

As a part of the acquisition, shareholders of ICICI Securities will get 67 equity shares of ICICI Bank for every 100 shares of the company. ICICI Bank will issue equity shares to public shareholders of ICICI Securities in lieu of cancellation of their equity shares in the company.

“While there are business synergies between the bank and the company, a consolidation by way of the merger is not permissible on account of regulatory restrictions on the bank from undertaking securities broking business departmentally,” ICICI Securities said in a regulatory filing.

“Based on the valuation report of the independent registered valuers, on which the merchant banker has given a fairness opinion, the public shareholders of ICICI Securities would be allotted 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities,” it added.

The acquisition is likely to be completed in the next 12-15 months after various regulatory approvals.

As on March 31, 2023, ICICI Bank held 74.85 per cent of the equity shares of ICICI Securities and the balance 25.15 per cent of equity shares were held by the public.

Explaining the rationale behind the delisting, ICICI Securities said, “Both the companies would be able to leverage the strong composite proposition to provide holistic financial services to existing and new customers.”