ICICI Bank to delist broking arm in $622 mln shareswap deal (updated)

ICICI Securities

29/06/2023 12:09

(Recasts first paragraph, adds details of delisting, share
prices)
       BENGALURU, June 29 (Reuters) - Indian private lender
ICICI Bank  ICBK.NS  said on Thursday it will delist its broking
arm ICICI Securities  ICCI.NS  in a shareswap deal worth about
51 billion rupees ($621.8 million).
        The deal will end ICICI Securities' five-year run as a
separately listed company which, as of last week, had seen its
stock float barely above its IPO issue price of 520 rupees.
    ICICI Bank will buy a 25.15% stake in ICICI Securities held
by public shareholders by allotting 67 shares of the bank for
every 100 shares of ICICI Securities, it said in a regulatory
filing. Shares of ICICI Securities will be cancelled in the deal
and ICICI Bank will fully own the brokerage.
        The shareswap ratio implies an offer price of about 628
rupees, indicating a 2.3% premium to ICICI Securities' Wednesday
close of 613.9 rupees. 
        Shares of the brokerage had surged about 9% over the
last three days after the companies notified India's stock
exchanges of Thursday's board meeting to consider the delisting.
    Till the meeting announcement, the Mumbai-based broker's
stock had gained just over 8% since they debuted in April 2018
after a dismal initial public offering. While the stock price
peaked at 896.05 rupees in 2021, it saw a rapid decline
thereafter.
        In that same period, ICICI Bank's stock surged 241%,
even outperforming the 90% jump in the Nifty financial services
index  .NIFTYFIN .
    The lender added that there will not be any impact on ICICI
Bank's capital adequacy as a result of deal.

($1 = 82.0170 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by
Shailesh Kuber)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter:
@MukherjeeHritam;))