ICICI Securities shares surge over 10% in early trade. Here’s why

By India Today Business DeskShares of ICICI Securities Ltd surged over 10 per cent in early trade on Monday after parent company ICICI Bank Ltd said it will consider a proposal to delist shares of the brokerage unit on June 29.

The stock was trading 9.20 per cent higher at Rs 614.85 at around 9:29 am. Earlier in the trading session, it rose as much as 14.9 per cent.

The delisting proposal seems to have boosted the sentiments of its investors.

In a regulatory filing, ICICI Securities said”The Board of Directors of the Company is scheduled to be held on Thursday, June 29, 2023, to consider a proposal for delisting of Equity Shares of the Company pursuant to a Scheme of Arrangement with ICICI Bank Limited, listed Holding Company, under Chapter VI Part C, Regulation 37 of SEBI (Delisting of Equity Shares) Regulations, 2021.”

ICICI Bank will also hold a similar board meeting on June 29 to consider the delisting proposal of its broking subsidiary ICICI Securities. It is worth mentioning that the promoter ICICI Bank holds 74.85 per cent stake in ICICI Securities, as per the shareholding pattern in March 2023.

The shares of ICICI Bank’s broking subsidiary were listed on the stock exchanges in April 2018 and are up more than 41 per cent in one year.