ICICI Securities becomes a wholly owned subsidiary company of ICICI Bank. Details here

ICICI Securities Limited has officially become a wholly owned subsidiary of ICICI Bank, marking the successful completion of their merger. Following the fulfillment of all necessary conditions, the merger scheme has come into effect, resulting in ICICI Securities’ delisting from the stock exchanges. The consolidation is expected to streamline operations and strengthen the bank’s financial services platform.

In a disclosure dated March 11, 2025, ICICI Securities confirmed that the merger scheme is now effective. The company’s Board of Directors has approved Monday, March 24, 2025, as the Record Date. On this date, public shareholders of ICICI Securities will have their existing equity shares cancelled and will be issued new equity shares of ICICI Bank based on the pre-defined swap ratio.

As per the merger terms, ICICI Securities is now deemed to be delisted from the BSE and NSE, becoming a fully integrated part of ICICI Bank.

Swap Ratio and Regulatory Approvals

The delisting proposal, first announced on June 29, 2023, specified a swap ratio of 67:100, meaning ICICI Securities shareholders will receive 67 shares of ICICI Bank for every 100 shares they hold in the broking firm.

The merger secured final regulatory approvals from the Ahmedabad and Mumbai benches, clearing the way for the Record Date and share swap to proceed.

The delisting proposal received overwhelming shareholder support, with 93.82 percent of total equity shareholders and 71.89 percent of public shareholders voting in favor. This comfortably exceeded the two-thirds majority of public shareholders’ votes required under SEBI regulations for approval.

Certain minority shareholders had filed objections to the delisting scheme. However, on March 10, 2025, the National Company Law Appellate Tribunal (NCLAT), New Delhi, dismissed all appeals filed by shareholders including Manu Rishi Guptha (holding 0.002 percent of shares) and Quantum Mutual Fund (holding 0.08 percent).

ICICI Securities’ Stock Performance

ICICI Securities’ stock has gained 4 percent so far in 2025 and is up 20 percent over the past year. The positive performance reflects investor confidence in the benefits of the merger.

Strategic Rationale for the Delisting

The delisting and integration of ICICI Securities with ICICI Bank’s core banking operations aims to 1) Streamline operations by consolidating financial services under a single umbrella; 2) Enhance corporate governance through unified oversight; and 3) Boost efficiency and competitiveness in the financial services sector by leveraging shared resources and synergies.

With the merger now finalized, ICICI Securities is officially a wholly owned subsidiary of ICICI Bank, effective from March 11, 2025. The March 24 Record Date will mark the final step. This strategic consolidation is expected to enhance efficiency, improve governance, and create long-term value for shareholders.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.