ICICI Securities slips 4% as shareholders approve dislisting plans

Shares of ICICI Securities fell up to 4 per cent in the early hours of intraday deals on Thursday. This came after the company’s management disclosed voting results for the delisting of ICICI Securities from the Indian bourses. 

On Wednesday, the exchanges had sought clarifications from the company on media reports pertaining to its delisisting plans. ICICI Securities on Thursday posted the shareholder voting results on the matter confirming the shareholders nod for the delisting. 

Approximately 72 percent of the brokerage's minority shareholders have voted in favour of the delisting, surpassing the regulatory requirement of a two-thirds majority for the resolution to pass. 

Following this announcement, shares of ICICI Securities experienced a 4.1 per cent decline at Rs 710 in early trading, while ICICI Bank witnessed a 1.3 per cent increase. However, the stock slimmed some of its losses and was trading 3.46 per cent lower at Rs 715.45 at 12:15 PM against the day’s low. 

Regarding public institutional investors, who collectively own 16.68 per cent of the company, 83.8 per cent voted in favour of the delisting. In contrast, only 32 per cent of non-institutional public shareholders, who hold 8.55 percent in the company, supported the delisting.

Norges Bank Investment Management, the largest public shareholder in ICICI Securities with a 3.2 per cent stake through one of its funds, had previously expressed its support for the delisting deal.

ICICI Bank, holding approximately 75 per cent stake in the brokerage, did not participate in the voting. Last June, it announced its intention to acquire the remaining 25 per cent stake in a share-swap agreement. 

The delisting marks the conclusion of ICICI Securities' six-year tenure as a public company, during which its stock price has appreciated by approximately 62 per cent.

ICICI Securities reported 66 per cent increase in net profit year on year in the third quarter of financial year 2023-24 (FY24), reaching Rs 465.1 crore against Rs 279.1 crore in the year ago period. Additionally, the company's revenue from operations surged by 50.5 per cent to Rs 1,322.4 crore, up from Rs 878.8 crore in the corresponding period of the previous fiscal year.