NCLT okays ICICI Securities delisting, dismisses opposing petitions; stock falls

With the delisting, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank.

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The National Company Law Tribunal, Mumbai, on August 21, approved the delisting plan of ICICI Securities, setting aside the objections raised by two minority shareholders. The NCLT bench, led by Justices Virendrasingh G Bisht and Prabhat Kumar, had reserved their order on August 5.

Back in June 2023, ICICI Securities had presented a plan to delist and subsequently merge with parent firm ICICI Bank. On June 29, 2023, the ICICI Bank board had given nod to the plan. In March this year, the delisting plan was approved by shareholders with 72 percent of the minority investors voting in favour.

What’s the ICICI Securities delisting plan?

With the delisting, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank. Shareholders would get 67 shares of ICICI Bank for every 100 shares of ICICI Securities, as per the plan.

Who opposed the delisting plan?

Quantum Mutual Fund, and investor Manu Rishi Gupta opposed the delisting of ICICI Securities in two separate pleas. They had claimed that share swap would adversely impact minority shareholders because of the depressed share price valuation at the time of announcing delisting. ICICI Securities contested the objections.

ICICI Securities share update

ICICI Securities share price slipped to Rs 802.2 per share on the National Stock Exchange (NSE), declining 5.43 percent from its previous close. Intraday, it touched a low of Rs 797.65, down nearly 6 percent. The counter had opened with a loss of 3.06 percent.