ICICI Bank Considers Delisting ICICI Securities On Thursday

ICICI Bank, the promoter of ICICI Securities, is reportedly considering a share swap as an alternative to a cash payout for its delisting proposal, according to sources familiar with the matter as reported by CNBC-TV18. The delisting proposal will be evaluated as part of a scheme of arrangement with the bank. Both ICICI Securities and ICICI Bank will convene board meetings on June 29 to discuss the delisting proposal. As of the March quarter, ICICI Bank held a 74.85 per cent stake in its broking arm.

In April 2018, ICICI Securities' shares were listed following an IPO worth Rs 4,000 crore. However, the response to the IPO was relatively weak, with a subscription rate of only 78 per cent during the three-day bidding process. When considering the anchor allotment, the overall subscription rate increases to 87.9 per cent. Despite the initial challenges, the stock is currently trading above its IPO price of Rs 520, with a 7 per cent increase observed on Friday. In fact, the shares of ICICI Securities have witnessed a three-day consecutive rise, resulting in a total gain of over 12 per cent. Friday's gains were the highest single-day increase in nearly a year.

Cash broking and derivative broking accounted for 35 per cent of ICICI Securities' revenue in the March quarter, with cash broking contributing 20 per cent and derivative broking 15 per cent. The revenue from derivative broking rose from Rs 856 crore in the same period last year to Rs 117 crore in the March quarter. It now represents 44 per cent of the total retail broking component, compared to 26 per cent in the previous year.