The National Company Law Tribunal's (NCLT) Mumbai bench has approved the proposed delisting of ICICI Securities from the BSE and NSE. The NCLT gave its approval to the arrangement scheme on Tuesday.
Its parent and promoter, ICICI Bank, defended its actions in the face of criticism for allegedly attempting to persuade shareholders to support a proposal to delist its subsidiary, ICICI Securities, citing worries about "a concerted campaign against the proposal" by those opposed to the scheme.
'Maximising participation in the vote' was stated as the outreach's main goal. According to ICICIBank, 'the outreach's strategy was to explain the proposed scheme, facilitate voting, and not pursue repeated engagement if the shareholder declined.'
Objections on delisting
The objections presented by Manu Rishi Gupta and Quantum Mutual Fund were also dismissed by NCLT Mumbai. Manu Rishi Gupta, a minority shareholder, held a 0.002 per cent stake in ICICI Securities, whereas Quantum MF held a 0.08 per cent stake.
93.8 per cent of ICICI Securities' equity owners had previously approved the company's delisting plan. In March of this year, the delisting of ICICI Securities was approved with 71.89 per cent of the vote in favour, despite opposition from retail investors.
Shareholders of ICICI securities
Owners of 100 shares of ICICI Securities as of the record date will receive 67 shares of ICICI Bank. ICICI Securities' shares are currently trading 4.75 per cent lower at Rs 794.90, nearing the day's low. By 2024, the stock had increased by 13 per cent.
Share performance
The shares of ICICI securities plummeted by 6.7 per cent on the National Stock Exchange. The share price of the ICICI securities opened at Rs 846.00 per share on the Indian bourse. The stock touched a day-low of Rs 793.00 per share on the National Stock Exchange.
