Why Is ICICI Securities Being Delisted? Understanding the Merger with ICICI Bank

ICICI Securities Ltd officially ceased trading on March 24, 2025, the record date marking the implementation of a scheme of arrangement between ICICI Securities, its shareholders, and its parent company, ICICI Bank Ltd. This delisting follows the announcement of the merger on 29 June 2023.

Under the merger agreement, shareholders of ICICI Securities are to receive 67 shares of ICICI Bank for every 100 shares held in the broking firm, reflecting a 67:100 swap ratio. The final regulatory approvals for this transaction were obtained from the Ahmedabad and Mumbai benches.

On the last trading day before delisting—Friday, 21 March 2025—the share price of ICICI Securities closed at ₹896.20 apiece.

The Listing Strategy: A Capital Management Move

Approximately 8 years ago, ICICI Bank had adopted a strategy of listing its key subsidiaries. This was primarily driven by the need to strengthen its capital base amid rising non-performing assets and an unfavourable macroeconomic environment.

Although the listing of subsidiaries like ICICI Securities was already on the agenda, the deteriorating state of ICICI Bank’s balance sheet at the time fast-tracked the process. ICICI Securities eventually went public in April 2018.

Why is ICICI Securities Delisting Now?

The decision to delist ICICI Securities comes as ICICI Bank realigns its operational strategy. The bank highlighted that the securities broking industry is inherently cyclical, significantly influenced by macroeconomic trends and the performance of equity markets.

As per a report, one of the key reasons for the delisting is the overlap in business functions between the bank and its broking subsidiary. This merger aims to streamline operations and eliminate redundancies.

Interestingly, despite the merger, ICICI Securities has maintained adequate internal accruals and requires minimal capital for expansion, reflecting its self-sustaining business model.

Merger Ratio and Implications for Shareholders

Under the terms of the merger, ICICI Securities shareholders will receive 0.67 shares of ICICI Bank for every one share they hold. This ratio was set to ensure a fair valuation for investors of both entities.

Conclusion

While the merger marks the end of ICICI Securities as an independently listed entity, it also reflects a strategic move by ICICI Bank to consolidate and optimise group operations amid an evolving financial services landscape.

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