ICICI Securities delisting proposal, merger with ICICI Bank approved by shareholders

Shares of ICICI Securities fell over 3 percent on March 28 as shareholders a day earlier approved a proposal to delist ICICI Securities Ltd, following which it will become a wholly-owned subsidiary of ICICI Bank.

According to a regulatory filing, 83.8 percent of the institutional shareholders and 32 percent non-institutional shareholders voted in favour of the delisting.

The voting results showed that 72 percent public shareholders voted for the delisting, while 67 percent of retail investors voted against the resolution. It was the large institutional holdings in ICICI Securities that led to the proposal being cleared.

Also Read | ICICI Bank faces backlash for attempting to sway minority voters on ICICI Securities’ delisting

As per the terms of the arrangement, shareholders of ICICI Securities will get 67 shares of ICICI Bank against every 100 shares held.

Before the resolution was passed, ICICI Bank faced significant backlash from minority shareholders. Several of them took to the social media platform X and said the bank’s executives had been calling ICICI Securities’ stakeholders to influence their voting.

The stock exchanges even wrote to ICICI Securities and ICICI Bank to provide a clarification on the same.

Quantum Mutual Fund, which holds a minor stake in ICICI Securities, earlier voted against the proposal saying that the move would be detrimental to the interests of the fund house’s unitholders.

Quantum Mutual Fund estimated that the merger will result in a net loss of at least Rs 6.08 crore to its unitholders. In its rationale, the fund house believes that ICICI Bank’s proposal undervalues ICICI Securities (ISEC) and gives ICICI Bank access to the full business of ISEC at a less than the fair market price.

Also Read | Quantum Mutual Fund votes against ICICI Bank and ICICI Securities merger

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