ICICI Securities shares give up gains from 52-week high despite strong earnings, interim dividend

Revenue for the quarter stood at Rs 1,249 crore, reporting a growth of 45% from last year.

The company also declared an interim dividend of Rs 12 per equity share of face value of Rs 5 each for its shareholders.

ICICI Securities had announced on June 29 that it will delist from the bourses and become a wholly-owned subsidiary of its parent ICICI Bank Ltd.

The stock has risen by 6% since that announcement.

Under the delisting proposal, public shareholders of the firm are supposed to be allocated 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities.

The decision comes five years after ICICI Securities made its stock market debut in April 2018. Though the fate of delisting is still uncertain as significant hurdles remain on the regulatory front.

Also, Norway’s Norges Bank Investment Management and South India-based Portfolio Management Service (PMS) are likely to raise their voices in opposition to the proposed delisting due to concerns over the company’s undervaluation.

After the initial pop, shares of ICICI Securities are trading 2.7% higher at Rs 649.