ICICI Securities Equity Shares To Be Suspended From March 24

ICICI Securities Ltd.'s equity shares will be suspended from March 24 due to the completion of the scheme of arrangement, according to an exchange filing on Wednesday.

This scheme of arrangement involves the delisting of ICICI Securities. ICICI Bank Ltd. will offer new shares in the swap ratio 67:100. ICICI Securities will become a wholly owned subsidiary of ICICI Bank after delisting.

Trading in equity shares of ICICI Securities will be suspended with effect from the closing hours of trading on March 21. March 24 is the record date for the purpose of determining the public shareholders of the company whose equity shares will stand cancelled and to whom the new equity shares of ICICI Bank will be issued according to the swap ratio set out in the scheme.

This move was opposed by the minority shareholders of ICICI Securities who filed a case with the National Company Law Appellate Tribunal, stating that it unfairly favoured the stockholders of ICICI Bank over them.

Despite this move, the proposal garnered popular support with 93.82% of private shareholders and 71.88% of public shareholders supporting it. The NCLAT ruled in ICICI Bank's favour stating that the minority shareholders failed to demonstrate the illegal nature of the delisting and swap-share ratio.

Shares of ICICI Securities closed 0.15% lower at Rs 829.10 per share on the National Stock Exchange, compared to a 0.27% decline in the benchmark Nifty. The share price has risen 10.02% in the last 12 months.

One out of the three analysts tracking the company has a 'buy' rating on the stock and two suggest 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 12.6%.