The National Company Law Tribunal (NCLT) in Mumbai has dismissed petitions filed by minority shareholders who opposed the delisting of ICICI Securities. The company can now proceed with its plan to delist and merge with its parent company, ICICI Bank. A detailed order from the tribunal is still awaited.
ICICI Securities announced in June 2023 its intention to delist and merge with ICICI Bank, a plan that was approved by 72% of minority shareholders in March 2024. The plan involves shareholders receiving 67 ICICI Bank shares for every 100 ICICI Securities shares they hold.
However, some shareholders, including Manu Rishi Gupta and Quantum Mutual Fund, opposed the plan, arguing that the share swap would negatively affect minority shareholders. They filed petitions with the NCLT, but ICICI Securities argued that the shareholders didn’t have enough stake to challenge the delisting.
The delisting proposal had already received approval from the Reserve Bank of India and no-objection letters from the BSE and NSE. Meanwhile, the Securities and Exchange Board of India (SEBI) is investigating claims that ICICI Bank employees tried to influence shareholders before the vote on the delisting.
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