NSE and BSE’s Nod to ICICI Bank for Delisting ICICI Securities

Formal Notification of Exchange Approval for Delisting

ICICI Bank disclosed on November 29 that it successfully secured approval from both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to delist ICICI Securities’ shares. Letters of ‘No Objection’ were received from the exchanges on November 28 and November 29, affirming the bank’s path toward delisting.

RBI Approval Sets Transformation in Motion 

In an official exchange notification, the ICICI Bank has announced that it has been granted approval from the Reserve Bank of India on November 9 to make ICICI Securities its wholly-owned subsidiary, subject to certain conditions. The approval will allow the private sector lender to proceed with the transformation of ICICI Securities. This significant move marks a crucial moment for ICICI Bank, which can now establish complete ownership of its subsidiary and operate it as a wholly-owned subsidiary.

Strategic Proposal Announcement

Back on June 26, ICICI Bank disclosed its intention to review a proposal for the delisting of ICICI Securities, a subsidiary of the bank. This strategic move aimed to consolidate control and streamline operations.

Delisting Declaration and Financial Strength

On June 29, ICICI Securities officially declared its intention to delist and become a fully-owned subsidiary of ICICI Bank. The announcement emphasized the low capital consumption of ICICI Securities, stating that internal accruals were more than sufficient to fund business growth. Importantly, it was noted that ICICI Bank was not expected to make additional capital infusions into the subsidiary.

Financial Performance Highlights

Q2 FY24 Financial Snapshot: ICICI Securities, the brokerage firm, posted robust financials on October 16. In the quarter ending September 2023, the company reported a net profit of Rs 424 crore, marking a substantial 41% surge compared to the same period in the previous year.

The total income in Q2 FY24 reached Rs 1,249 crore, reflecting a remarkable 44% increase from Rs 865.63 crore reported in the September 2023 quarter. This growth was fuelled by the cash and derivative segment, along with momentum in the investment banking segment.