ICICI Bank gets approval from Indian bourses for delisting of ICICI Securities shares
- On November 9, the Reserve Bank of India (RBI) granted approval to ICICI Bank, allowing it to establish full ownership of ICICI Securities.
ICICI Bank, a private sector lender, revealed that it had obtained approval from both the National Stock Exchange (NSE) and Bombay Stock Exchange to delist the shares of ICICI Securities, the company said on November 29. The notification from the bank indicated that it received letters from the exchanges on November 28 and November 29.
“We would like to inform you that the Bank is in receipt of observation letters communicating ‘No Objection’ dated November 28, 2023, and November 29, 2023, from the National Stock Exchange of India Limited and BSE Limited, respectively,” the lender mentioned in the notification.
On November 9, the Reserve Bank of India (RBI) granted approval to ICICI Bank, allowing it to establish full ownership of ICICI Securities, marking a significant development in their subsidiary relationship.
“We would like to inform you that today the bank has received approval from the Reserve Bank of India for making ICICI Securities a wholly-owned subsidiary, subject to certain conditions,” the bank stated in an exchange notification on November 9.
On June 26, the financial institution disclosed its intention to review a proposal regarding the delisting of ICICI Securities, a subsidiary of the bank.
"ICICI Securities is a low capital-consuming business, and the internal accruals are more than adequate to fund business growth. ICICI Bank is not expected to be required to make additional capital infusion into the company,” it said on June 26.
Subsequently, on June 29, ICICI Securities declared its intention to delist and transform into a fully-owned subsidiary of its parent company, ICICI Bank.
Brokerage firm ICICI Securities on October 16 posted a net profit of ₹424 crore in the quarter ending September 2023, marking a surge of 41 percent as compared to the year-ago period.
In the second quarter of FY23, the company's profit after tax stood at ₹300.4 crore, as per the regulatory filing made by the ICICI Group company.
The total income in Q2FY24 came in ₹1,249 crore, which is 44 percent higher than ₹865.63 crore reported in the September 2022 quarter. The surge in income was driven by the cash and derivative segment marking a growth, apart from the momentum seen in the investment banking segment.
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