Following the approval of the company’s delisting by shareholders of India’s top broking firm, shares of ICICI Securities fell by more than 4%. Following the approval of its delisting plan by its shareholders, ICICI Securities became a fully-owned subsidiary of ICICI Bank.
ICICI Securities’ shares were seen to be down over 4% at 9:15 a.m., hitting intraday lows of Rs 708 on the NSE.
72% of shareholders voted in support of ICICI Securities and ICICI Bank merging after the delisting process, according to the results of the shareholder vote that were made public today.
As per the terms of the agreement, for every 100 shares held in ICICI Securities, stockholders will receive 67 shares of ICICI Bank.
In order to delist its shares, ICICI Securities’ board adopted a scheme of arrangement last year. Under this plan, ICICI Bank would issue shares to ICICI Securities’ public shareholders, therefore converting ICICI Securities into a wholly-owned subsidiary.
The BSE and NSE sent ICICI Securities “No objection” and “No adverse observations” letters in November of last year, while the NCLT approved the merger in January.
With the intention of merging ICICI Securities, its 75% subsidiary, with itself, ICICI Bank will provide investors 0.67 shares of ICICI Bank for each share of ICICI Securities. Notably, Quantum Mutual Fund voted against the ICICI Securities delisting request, while Norges Fund Investment Bank, the largest public shareholder, supported it.
According to Quantum Mutual Fund, unitholders may suffer a net loss of at least Rs 6.08 crore as a result of the merger. According to the fund house, ICICI Bank’s bid undervalues ICICI Securities, giving ICICI Bank access to ICICI Securities’ whole business at a price below fair market value.
