Industrial Credit and Investment Corporation of India (ICICI) Bank Ltd. on Wednesday said, that it would sell up to 2% of its equity stake holding in its subsidiary, ICICI Securities Ltd. through an open market transaction.
The bank in a regulatory filing said that the Board of Directors meeting of the bank held on Wednesday, has approved a sale of 6,442,000 equity shares having a face value of Rs 5 each, of ICICI Securities Ltd. which would be representing nearly up to 2% equity share capital through an open market. The private lender also added, that the sale is in the accordance with the minimum required public float of the company.
ICICI Securities Ltd. was listed on the stock markets back in April 2018 and offer services which includes broking, distribution of financial products, investment banking and wealth management. Recently, ICICI Securities had joined hands with Interactive Brokers LLC, US-based Nasdaq-listed online brokerage, for offering its ICICI Direct clients a facility to invest in different stocks, ETFs, mutual funds of US markets through a complete digital experience.
ICICI Securities promoter, ICICI Bank held around 79.22% equity stake about 25,52,16,095 shares of ICICI Securities as of 30 June, 2020. But, according to Security and Exchange Board of India (SEBI) norms, when the company is listed, its promoters need to bring down their shareholding to 75% within a stipulated period, to meet the minimum required public float of 25% in the company.