August 21, 2024
New Delhi, India
ICICI Securities Shares
The National Company Law Tribunal (NCLT) has approved the delisting of ICICI Securities from stock exchanges, causing a significant reaction in the market. On Wednesday, shares of ICICI Securities plummeted by 6.02%, reaching a day low of ₹798. The stock was last observed trading 5.02% lower at ₹806.50. Despite this drop, the stock has risen 13.54% on a year-to-date (YTD) basis.
Delisting Approval by NCLT: The Mumbai bench of the NCLT approved the delisting application of ICICI Securities, although the detailed order was not available at the time of writing. The approval marks a significant step in ICICI Securities’ transition from being a publicly traded entity.
SEBI Settlement: In a separate development, ICICI Securities announced in a BSE filing that it has paid ₹69.82 lakh to the Securities and Exchange Board of India (SEBI) as a settlement amount under the SEBI (Settlement Proceedings) Regulations, 2018. This payment relates to a settlement application submitted by the company in connection with an inspection of its books and records concerning Merchant Banking activities. The company opted for settlement to avoid prolonged legal proceedings after receiving a Show Cause Notice from SEBI on October 31, 2023.
ICICI Securities confirmed receiving the settlement order from SEBI on August 20, 2024, noting that there would be no material impact on the company’s financial, operational, or other activities as a result of this order.
Market Reaction and Stock Performance: Following the NCLT’s approval, ICICI Securities’ stock experienced a sharp decline, with over 87,000 shares changing hands on the BSE, significantly higher than the two-week average volume of 31,000 shares. The day’s turnover on the counter stood at ₹7.18 crore, giving the company a market capitalization of ₹26,122.36 crore.
Despite the drop, the stock has been performing well over a longer period, trading above its 5-day, 10-, 20-, 30-, 50-, 100-, 150-day, and 200-day simple moving averages (SMAs). The stock’s 14-day relative strength index (RSI) was at 58.17, indicating it is in a neutral zone—not oversold or overbought.
Financial Metrics: ICICI Securities has a price-to-equity (P/E) ratio of 14.10 and a price-to-book (P/B) value of 7.06, as per BSE data. The company’s earnings per share (EPS) stand at ₹60.24, with a return on equity (RoE) of 50.10%. As of June 2024, promoters held a 74.65% stake in the company.
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