ICICI Securities shares jump 15% ahead of board meeting to consider delisting proposal

Although the QIB portion was fully subscribed during the IPO, the quota for retail and non-institutional investors remained undersubscribed. Post the undersubscription, the IPO size was cut to Rs 3,500 crore. Shares had listed at a discount of nearly 17 percent to the issue price of Rs 520.

Post the announcement, shares of ICICI Securities rose as much as 15 percent on Monday. The stock has risen for four days in a row, during which it has gained over 20 percent.

A voluntary delisting is a process by which an exit price is determinedthrough a reverse book building process. The floor price is then calculated in accordance with regulations and the shareholders have to make a bid at a price either or above the floor price.

If the exit price determined is acceptable to the promoter, they would pay that price to the shareholders for them to exit. Those investors who do not participate in the reverse book building process have an option to offer their shares for sale to the promoters, who are under an obligation to accept these shares at the same exit price. The facility is usually available for a period of at least one year from the date of closure of the delisting process.

35 percent of ICICI Securities' March quarter revenue came from cash broking (20 percent) and derivative broking (15 percent). The derivative broking revenue grew to Rs 117 crore in the March quarter from Rs 856 crore during the same period last year. It now forms 44 percent of the total retail broking component, compared to 26 percent last year.

Shares of ICICI Securities are currently trading 12.7 percent higher at Rs 634.65.