ICICI Securities falls by over 3% as NCLT greenlights delisting plans

ICICI Securities witnessed a decline of over 3% on Thursday morning as the National Company Law Tribunal (NCLT) approved the company's delisting plans. The stock fell as much as 3.42% to ₹ 837.65 per share on the Bombay Stock Exchange (BSE). The delisting involves restructuring between ICICI Securities and its parent company, ICICI Bank, under SEBI's Delisting Regulations, 2021.

Restructuring details and share market impact

The NCLT order laid out that public shareholders of ICICI Securities will have their shares cancelled in exchange for shares in ICICI Bank. For every 100 shares of ICICI Securities, shareholders will receive 67 shares of ICICI Bank. This restructuring plan will make ICICI Securities a wholly-owned subsidiary of ICICI Bank.

The share market investment community is closely watching this development, as the company's stock has outperformed the broader market. ICICI Securities' share price surged by 51.3% year-to-date, compared to the BSE Sensex's 12.9% rise. For investors, this means the share market investment in ICICI Securities has yielded better returns than the overall market.

Financial performance amid delisting news

ICICI Securities' Q1 FY25 financial performance has been strong. The company reported a 94.55% jump in consolidated net profit, reaching ₹ 526.91 crore. Its total income surged by 75.95% YoY to ₹ 1,644.11 crore, bolstered by a rise in interest income and brokerage revenue. These results demonstrate that, despite the delisting news, the company remains financially sound and continues to deliver significant returns on share market investments.

For those considering share market investments, the delisting and swap of shares between ICICI Securities and ICICI Bank might present an opportunity, given the stock's past performance and the solid financial growth of both entities.

Key takeaways

• Share price impact: ICICI Securities shares dropped over 3% after NCLT approved the delisting plan.
• Restructuring: Shareholders will receive ICICI Bank shares in a 67:100 swap.
• Financials: Strong Q1 performance with net profit surging 94.55%, signalling continued growth amid delisting news.