Another NCLT bench approves ICICI Securities' delisting plans
This story was originally published at 16:55 IST on 9 October 2024
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NEW DELHI – After the approval from the Mumbai bench; the Ahmedabad bench of the National Company Law Tribunal on Wednesday approved ICICI Securities Ltd's delisting plans and rejected objections by certain minority shareholders who had opposed it. The tribunal led by judicial member Shammi Khan pronounced an oral order. A detailed order is awaited.
Quantum Mutual Fund and an investor, Manu Rishi Gupta, had objected to the proposed delisting of ICICI Securities on the two benches of the tribunal. They had highlighted concern regarding the depressed valuation and share-swap ratio of ICICI Securities, saying the swap adversely affected minority shareholders. Quantum Mutual Fund and Gupta hold 0.08% and 0.002%, respectively, of the paid-up equity share capital of ICICI Securities. They also questioned the fairness of the deal, especially given the stock's low price relative to its potential.
ICICI Securities had argued in the tribunal that Quantum Mutual Fund and Gupta had no locus standi in the case. The Companies Act provided that any objection to a scheme of arrangement shall be made only by persons either holding at least 10% equity or 5% of total outstanding debt, it said.
As per the delisting scheme, ICICI Bank will issue 67 shares for every 100 shares of the brokerage held by public shareholders. The scheme of arrangement envisages the cancellation of around 25.2% shares of ICICI Securities held by public shareholders and making it a wholly-owned subsidiary of ICICI Bank.
On Aug. 21, the Mumbai bench of the tribunal had approved ICICI Securities' delisting plan. On Oct. 1, the National Company Law Appellate Tribunal had issued a notice to ICICI Securities on an appeal by minority shareholders against the Mumbai bench's order.
Today, shares of ICICI Securities ended 0.2% lower at INR 868.25 on the National Stock Exchange, and those of ICICI Bank ended 0.6% higher at INR 1,244.15.
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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