Last Updated: March 28, 2024, 11:39 IST
ICICI Securities shareholders have handed the scheme of association to delist ICICI Securities
The voting on the merger scheme was achieved following a National Company Law Tribunal (NCLT) order of February 14, 2024
Nearly 72 per cent of shareholder votes had been solid in favour of the scheme of association for the merger of ICICI Securities with its promoter ICICI Bank, following which it should turn into a completely-owned subsidiary of ICICI Bank.
The phrases of the association recommend that shareholders of ICICI Securities will get 67 shares of ICICI Bank in opposition to each 100 shares held.
Among the general public institutional shareholders, 83.8 per cent voted in favour, whereas solely 32 per cent votes had been in favour among the many public non-institutional shareholders. However, the big institutional holdings in ICICI Securities led to the proposal being cleared.
The voting on the merger scheme was achieved following a National Company Law Tribunal (NCLT) order of February 14, 2024 to think about approving the scheme. The assembly was attended by 161 fairness shareholders together with authorised representatives.
ICICI Securities shares fell over 4 per cent to the day’s low of Rs 710 on the BSE whereas ICICI Bank’s shares jumped 1.6 per cent to the day’s excessive of Rs 1101.35.
Indian inventory exchanges had on Wednesday sought clarification from ICICI Securities and promoter ICICI Bank on media experiences suggesting that ICICI Bank staff had been contacting ICICI Securities retail shareholders in reference to the delisting of the previous.
ICICI Bank has been below hearth for allegedly coaxing minority shareholders of ICICI Securities (I-Sec) to assist the personal lender’s proposal to delist the broking and funding banking arm. The transfer got here after some shareholders of ICICI Securities claimed on social media that the financial institution’s executives contacted them straight, asking them to vote in favour of the decision that proposes to delist the broking subsidiary.
In November final yr, ICICI Securities obtained “No objection” and “No adverse observations” letters from BSE and NSE; and in January, NCLT cleared the merger.
Quantum Mutual Fund estimates that the merger will end in a internet lack of a minimum of Rs 6.08 crore to its unitholders. In its rationale, the fund home believes that ICICI Bank’s proposal undervalues ICICI Securities and offers ICICI Bank entry to the total enterprise of ISEC at a lower than truthful market worth.
