ICICI Bank to stake out 2.2% equity share from ICICI Securities via OFS

On Tuesday, ICICI Bank informed about a decision of selling 71.21 lakhs share or 2.21 percent equity in ICICI Securities through an offer for sale to meet MPS (minimum public shareholding) norm, Mint reported.

In a stock exchange filing, ICICI Bank said, “The Board of Directors of the Bank, at its meeting held today, approved the sale of up to 7,121,403 equity shares of face value Rs 5 each of ICICI Securities Limited (“Company”), representing up to 2.21 percent of its issued and paid-up equity share capital, through an offer for sale through stock exchange mechanism, in accordance with applicable law, towards compliance with the requirement of the minimum public float of the company.”

As a result, on Tuesday, ICICI Securities’ stock closed at 1.5 percent higher at Rs 461.50 on BSE. According to Mint, SEBI has cautioned ICICI Securities to have due diligence while providing accurate research reports.

The Institutional Research Team of IC/CI Securities had issued a Research Report on the Q1 results of Vedanta Ltd on October 5, 2020. In this report, it was accidentally mentioned, Vedanta has informed SEBI approved book value of Rs 89.3 per share.

SEBI responded, “SEBI, as a matter of policy, neither approves nor disapproves any book value or delisting price.” Additionally, “ICICI Securities Ltd. is hereby cautioned to be careful in future, ensure compliance with the provision of SEBI (Research Analyst) Regulations, 2014 and exercise due care for accuracy in its research policy.”

ICICI Securities in a stock exchange filing said, “The company believes that letter does not have any material impact on the financial position of the company.”

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