ICICI Bank’s board has approved the demerger of this company’s shares, which is engaged in the business of broking, distribution of financial products, merchant banking, and advisory services. 

At 11:31 a.m the shares of ICICI Securities Limited were trading at Rs. 669.50, up 0.76 percent from its previous day’s close price of Rs. 664.45 and its market capitalization is Rs. 21,590 Crores. 

The board of directors of ICICI Bank have approved the scheme of arrangement for the delisting of equity shares of ICICI Securities. The equity shares of ICICI Bank will be issued to the public shareholders of ICICI Securities in lieu of cancellation of their equity shares in ICICI Securities. Following the delisting of equity shares of ICICI Securities, it will become a wholly-owned subsidiary of ICICI Bank. 

As of Q2FY24, it has total assets under management(AUM) of Rs. 3.7 Trillion, Total client base stands at 91,000+. 

ICICI Securities has a consistent dividend yield and returned a yield of 4.44% in FY23 for Rs. 19 per equity share. 

The company’s revenue from operations decreased by 0.56 percent from Rs. 3,434.98 Crores in FY22 to Rs. 3,415.75 Crores in FY23, accompanied by decreasing profits of Rs. 1,382.6 Crores to Rs. 1,117.63 Crores. 

It has reported a return on equity (ROE) of 42.93 percent and a return on capital employed (ROCE) of 18.25 percent, it is making good returns on its equity and capital employed. 

According to the latest shareholding data available for the September 2023 quarter, the Promoters of the company hold 74.79 percent stake, the Foreign Institutional Investors (FII) hold 10.06 percent and the Domestic Institutional Investors hold 6.21 percent. 

ICICI Securities Limited is engaged in the business of broking (institutional and retail), distribution of financial products, merchant banking and advisory services 

Written by: Bharath K.S


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