Shares of ICICI Securities Ltd fell 4% on Thursday after shareholders cleared a proposal to delist ICICI Securities, following which it will become a wholly-owned subsidiary of ICICI Bank. ICICI Securities shares slipped 4.18% to Rs 710 against the previous close of Rs 741.10 on BSE. Market cap of the brokerage firm declined to Rs 23,425 crore.
Total 0.25 lakh shares of the firm changed hands amounting to a turnover of Rs 1.82 crore. The stock has a beta of 0.6, indicating low volatility in a year.
In terms of technicals, the relative strength index (RSI) of ICICI Securities stands at 42.2, signaling it's neither trading in the overbought nor in the oversold territory. ICICI Securities shares are trading lower than the 150 day, 200 day but higher than the 5 day, 10 day, 20 day, 30 day, 50 day and 100 day moving averages.
According to a regulatory filing, 83.8 percent of the institutional shareholders and 32 percent non-institutional shareholders cast their votes in favour of the delisting.
According to voting results, 72 percent public shareholders voted for the delisting, while 67 percent of retail investors voted against the resolution. It was the large institutional holdings in ICICI Securities that led to the clearance of the proposal.
Shareholders of ICICI Securities will receive 67 shares of ICICI Bank against every 100 shares held as per the terms of the arrangement.