ICICI Securities Shareholders Approve Delisting Proposal Amid Controversy

28 Mar 2024 , 11:25 AM

ICICI Securities shares dropped by over 3% on March 28 following approval from shareholders to delist the company, making it a wholly-owned subsidiary of ICICI Bank. At the time of writing, the stocks were trading at ₹719.25 which is a 3.03% dip than the previous close.

Regulatory filings revealed that 83.8% of institutional shareholders and 32% of non-institutional shareholders voted in favour of the delisting proposal.

Public shareholders supported the delisting with a 72% majority, while 67% of retail investors opposed it. The proposal gained traction due to significant institutional support.

Shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares held as per the delisting terms.

Prior to the resolution passing, ICICI Bank faced criticism from minority shareholders, who alleged undue influence by the bank’s executives on ICICI Securities stakeholders’ voting decisions.

Stock exchanges requested clarification from both ICICI Securities and ICICI Bank regarding the alleged attempts to influence voting.

Quantum Mutual Fund, a minor stakeholder in ICICI Securities, voted against the proposal, citing potential detrimental effects on its unitholders.

Quantum Mutual Fund estimated a net loss of at least ₹6.08 Crore to its unitholders due to the merger, arguing that ICICI Bank’s proposal undervalues ICICI Securities and provides access to its full business at a below-market price.

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