 "ICICI Securities slides over 3% as NCLT approves delisting plans; details")
ICICI Securities share price dipped as much as 3.42 per cent to Rs 837.65 per share on the BSE in Thursday’s early morning trade after the National Company Law Tribunal approved the delisting of the company from BSE and NSE.
In its order NCLT said that the proposed scheme that involves a restructuring between ICICI Bank and its subsidiary, ICICI Securities, includes delisting ICICI Securities' shares from the BSE and NSE under SEBI's Delisting Regulations, 2021.
The public shareholders of ICICI Securities will have their shares cancelled, and in exchange, they will receive new shares in ICICI Bank based on a specified swap ratio. As a result, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank, the NCLT order said.
As per the scheme of arrangement, shareholders will receive 67 shares of ICICI Bank for every 100 shares of ICICI Securities they hold. Moreover, minority shareholder objections were dismissed by the NCLT court.
Share price history
The firm’s share price has outperformed the market as it surged 51.3 per cent year to date, while gaining 42.1 per cent in the last one year. In comparison BSE Sensex has risen 12.9 per cent year to date and 23.5 per cent in a year.
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The company has a total market capitalization of Rs 16,574.67 crore. Its shares are trading at price to earnings valuation of 8.23 times with an earning per share of Rs 198.72.
At 9:19 AM, the stock price of the company was trading 5.02 per cent higher at Rs 1717 a piece on the BSE. Meanwhile shares of ICICI Bank were trading 0.11 per cent higher at Rs 1,246 per share on the BSE. By comparison, the BSE’s Sensex was up 0.22 per cent to 81,642.32 level.
Q1 financial show
The broking firm's consolidated net profit surged by 94.55 per cent to Rs 526.91 crore in Q1 FY25, compared to Rs 270.84 crore in Q1 FY24.
Total income for the quarter ended 30 June 2024 was Rs 1,644.11 crore, reflecting a 75.95 per cent year-on-year (YoY) increase. Profit before tax also saw a significant rise of 94.18 per cent, reaching Rs 707.53 crore in Q1 FY25, up from Rs 364.37 crore in the same period last year.
Interest income grew by 89.3 per cent YoY to Rs 582.59 crore, driven by higher average MTF (margin trading facility) funding and an increase in the fixed deposit portfolio.
Brokerage income jumped 81.48 per cent YoY to Rs 622.29 crore, mainly due to increased trading volumes in equities and derivatives.
Retail broking and allied revenue rose 92 per cent YoY, fueled by higher cash volumes and growth in equity-related business.