The boards of ICICI Bank and ICICI Securities on Thursday separately approved proposals for the delisting of the latter. ICICI Securities will become a wholly-owned subsidiary of the private sector lender.
While delisting usually involves the payment of cash to shareholders, in this case ICICI Securities will be allotted shares of ICICI Bank. Shareholders of ICICI Securities will be given 67 shares of the bank for every 100 shares held.
Both the companies had earlier announced that their boards will consider the delisting pursuant to a scheme of arrangement with the bank under Chapter VI, Part C, Regulation 37 of the Sebi (Delisting of Equity Shares) Regulations, 2021’’.
Chapter VI, Part C of Sebi’s delisting rules deals with a subsidiary company getting delisted through a scheme of arrangement wherein the listed holding company and the arm are in the same line of business.