ICICI Securities delisting: Record date fixed, swap ratio & other details

ICICI Securities Delisting: ICICI Bank and its broking arm ICICI Securities have announced that the scheme of arrangement for the delisting of the latter one has been fulfilled. The private lenders also announced the record date for the issue of new ICICI Bank shares to the eligible shareholders of ICICI Securties.

"The Board of Directors of the company, at its meeting today, that is, March 11, 2025, approved Monday, March 24, 2025 as 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 as per the swap ratio set out in the scheme," said ICICI Securities in the exchange filing.

In a nutshell, ICICI Securities Ltd set to delist after NCLAT dismissed petitions against the process, citing lack of shareholding threshold. ICICI Bank Ltd to offer new shares in a 67:100 swap ratio. It means that eligible shareholders will receive 100 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities held by them as of the record date.

Shares of ICICI Securities Ltd inched up a per cent to Rs 837.90 on Wednesday, with its total market capitalization standing above Rs 27,000 crore mark. The stock has corrected nearly 10 per cent from its 52-week high at Rs 921.45 hit in September 2024, while it has gained about 25 per cent from its 52-week low at Rs 671.60 scaled in June 2024.

On the other hand, shares of ICICI Bank Ltd dropped to Rs 1,239 during the Wednesday's trading session, falling about half a per cent for the day. The total market capitalization of the company stood below Rs 8.8 lakh crore. However, the stock has tumbled about 9 per cent from its 52-week high at Rs 1,361.35.

The National Company Law Appellate Tribunal (NCLAT) had dismissed petitions challenging the delisting of ICICI Securities, facilitating its path to becoming a wholly-owned subsidiary of ICICI Bank. On March 10, 2025, the NCLAT ruled that the appellants failed to demonstrate any illegality in the delisting procedure.

The dismissal is a significant development for ICICI Bank, which aims to consolidate its hold over ICICI Securities. ICICI Bank has set a record date of 24 March 2025 for issuing new shares to ICICI Securities shareholders as part of the delisting process. The proposal has garnered robust backing, with 93.82 per cent of equity shareholders and 71.89 per cent of public shareholders supporting it.

However, opposition persists among retail investors, with many raising objections in the National Company Law Tribunal (NCLT) over the perceived undervaluation in the share swap ratio.The NCLAT’s order also emphasised that speculative litigation by a few minority shareholders was attempting to hinder the process, potentially depriving majority shareholders of realised benefits.

The delisting and subsequent merger are strategically significant for ICICI Bank, aiming to streamline operations and enhance corporate governance by integrating ICICI Securities more closely with its core banking operations. This move is anticipated to optimise efficiency and drive competitive advantage in the financial services sector