ICICI Bank, a leading private sector lender, has received approval from both the National Stock Exchange (NSE) and the Bombay Stock Exchange to delist shares of its subsidiary, ICICI Securities, according to a statement released on November 29. The bank disclosed that it received “No Objection” letters from the exchanges on November 28 and November 29, marking a significant step in the process.
The notification stated, “We would like to inform you that the Bank is in receipt of observation letters communicating ‘No Objection’ dated November 28, 2023, and November 29, 2023, from the National Stock Exchange of India Limited and BSE Limited, respectively.”
The bank had communicated this approval in an exchange notification on the same day, stating, “We would like to inform you that today the bank has received approval from the Reserve Bank of India for making ICICI Securities a wholly-owned subsidiary, subject to certain conditions.”
The bank highlighted that ICICI Securities is a low capital-consuming business with sufficient internal accruals to fund its growth, negating the need for additional capital infusion from ICICI Bank.On June 29, ICICI Securities officially declared its intention to delist and transform into a fully-owned subsidiary of its parent company, ICICI Bank.
In its financial performance update, ICICI Securities, a brokerage firm, reported a net profit of ₹424 crore in the quarter ending September 2023. This marked a substantial 41 percent increase compared to the same period last year. For the second quarter of FY23, the company’s profit after tax stood at ₹300.4 crore, as per the regulatory filing made by the ICICI Group company.The total income in Q2FY24 reached ₹1,249 crore, reflecting a remarkable 44 percent growth compared to ₹865.63 crore reported in the September 2022 quarter