Shares surge 10 per cent to hit 52-week high as board mulls voluntary delisting!
A board meeting will be held to discuss a proposal to delist its equity shares.
On Monday, the share price of ICICI Securities Limited soared 10.38 per cent, to trade at a new 52-week high of Rs 650 per share on BSE. The scrip witnessed massive spurt in volume by more than 28.42 times after the company announced a board meeting on Thursday, June 29 to discuss a proposal to delist its equity shares.
ICICI Securities Limited is in the business of broking (institutional and retail), financial product distribution, merchant banking and consulting services.
ICICI Bank holds 74.85 per cent of ICICI Securities, according to the March 2023 shareholding structure. ICICI Bank will hold a similar board meeting on June 29 to discuss the proposed delisting of its brokerage unit, ICICI Securities.
According to Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities Ltd, in a voluntary delisting offer the stock would usually react positively on an assumption of higher exit price to shareholders determined through a reverse book building process. If we go through the history, in 2018 April a Rs 4,000 crore IPO had received a poor response and it was undersubscribed by 78 per cent during the three-day bidding process.
“On a listing date it was listed below issue price, since then the stock has overall underperformed to benchmark and now on Friday’s close, the stock is trading above issue price. ICICI Securities feels it’s right time to take a call on this corporate decision. It would be difficult to assume the exact reason for such a surprising decision from the management," added Tapse.
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Shareholders should keep track of this delisting.