For every 100 shares of the company, ICICI Securities stockholders would receive 67 equity shares of ICICI Bank as part of the acquisition.

On Thursday, ICICI Securities revealed that upon delisting, it would merge with ICICI Bank to form a wholly-owned subsidiary. The firm announced that the draft scheme of arrangement for the delisting of the company’s equity shares has been approved by the board of directors.

For every 100 shares of the company, ICICI Securities stockholders would receive 67 equity shares of ICICI Bank as part of the acquisition. In place of canceling their equity shares in the company, ICICI Bank would offer equity shares to ICICI Securities’ public shareholders.

Although there are economic synergies between the bank and the company, ICICI Securities stated in a regulatory filing that a consolidation by way of a merger is not permitted due to regulatory limits on the bank’s ability to conduct securities brokerage operations departmentally.

“The public shareholders of ICICI Securities would be allotted 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities, based on the valuation report of the independent registered valuers, on which the merchant banker has given a fairness opinion,” it added.

Once the transaction has received all necessary regulatory clearances, it should be finished within the following 12 to 15 months.

As of March 31, 2023, ICICI Bank owned 74.85% of the equity shares in ICICI Securities, with the remaining equity shares being held by the general public at 25.15 percent.

“Both the companies would be able to leverage the strong composite proposition to provide holistic financial services to existing and new customers,” ICICI Securities explained in a statement explaining the reasoning behind the delisting.