ICICI Bank, a leading private lender, said that it will sell out 2.21% of its equity stake in ICICI Securities through an offer for sale (OFS).
The company said in a stock exchange filing that the Board of Directors of the Bank in a meeting sanctioned the sale of up to 7,121,403 equity shares of its book value Rs. 5 each of ICICI Securities Limited. Through an offer for sale through the stock exchange mechanism, it is represented up to 2.21% of its issued and paid-up equity share capital, as per the applicable law towards compliance with the prerequisite of the minimum public float of the company.
Shares of ICICI Securities rose to 1.36 percent to Rs 460.90, while those of ICICI Bank fell 0.4 percent to settle at Rs 508.50. The market regulator Securities and Exchange Board of India (SEBI) warned ICICI Securities to exercise additional attention for accuracy in its research reports.
On October 5, 2020, the Institutional Research Team of ICICl Securities had issued a Research Report on the Q1 results of Vedanta Ltd. In the report, it was unintentionally stated that Vedanta has emphasized that SEBI approved book value (ex the revaluation reserves) is Rs 89.3 /share.
The market regulator, SEBI, said that as a matter of policy, neither affirms nor opposes any Book Value or Delisting Price. ICICI Bank held a 77.22 percent equity stake in ICICI Securities as of 30 September. By March 2021, the bank has to meet shareholding norms by bringing down its equity stake to at least 75 percent. ICICI bank mentioned that in the September quarter, there is a six-fold jump in its net profit to Rs 4,251 crores. Net interest income increased at 16 percent year-on-year to Rs 9,366 crores during this period.
In August, ICICI Bank had offloaded around a 2% stake in ICICI Securities. A sum of 6.44 million shares was sold in the open market. ICICI Bank Limited is an Indian multinational banking and financial services organization with its registered office in Vadodara, Gujarat, and corporate office in Mumbai, Maharashtra. It offers a wide variety of banking products and services for corporate and retail clients in the areas of investment banking, life, non-life insurance, etc.
