SC upholds ICICI Securities delisting, clears way for merger with ICICI Bank

ICICI Securities was delisted this year in March and became a wholly owned subsidiary of ICICI Bank

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In a major boost, Supreme Court has upheld the delisting of ICICI Securities, clearing the way for its merger with ICICI Bank.

The top court’s order came in response to a plea filed by investor Manu Rishi Gupta, who had challenged the fairness of the share valuation. He had also argued that the use of a reverse book-building (RBB) process could have ensured a better price for minority shareholders.

ICICI Securities was delisted this year in March and became a wholly owned subsidiary of ICICI Bank. In his plea, Gupta said that the delisting process was not transparent and ‘shocking’ in its execution.

In June 2023, ICICI Securities had announced its plans to delist from stock exchanges and merge with its parent ICICI Bank. ICICI Securities investors were to get 67 shares of ICICI Bank against every 100 hundred shares of ICICI securities they owned. The ratio was arrived upon based on a valuation conducted by two registered valuers: PWC Business Consulting Services and EY Merchant Banking Services, disclosures showed.