ICICI Sec in the red

ICICI Securities is a big newsmaker today thanks to its delisting getting approved. But the retail shareholders are obviously miffed as the stock is down in the red. Opening over 2.5% higher at Rs.720.80, the stock slipped further more than 4% to an intraday low at Rs.710. It has recovered since then and is now trading at Rs.723 levels.

It is thanks to the large institutional holding in ICICI Sec that the delisting got cleared. Institutional investors, who hold 16.68% stake voted hugely, 83.8%, in favour of the delisting. Non-institutional or retail investors, who hold 8,.55% stake, of this, 68% voted not-in-favour.

The delisting will obviously now go through and once delisted, ICICI Sec will become a wholly owned subsidiary of ICICI Bank.

As per the scheme of the delisting, it is calculated that shareholders of ICICI Sec will get 67 shares of ICICI Bank against every 100 shares held.