Quantum MF files case in NCLT on ICICI Securities delisting case

In an eight-page letter to ICICI Bank and the regulator on April 10, Quantum Mutual Fund's Managing Director and CEO, Jimmy A Patel raised various concerns on the valuation as well as the process put in place.

Quantum Mutual Fund has filed a case against ICICI Securities with regards to the ongoing ICICI Securities delisting. This move comes after a class action suit was filed by a group of 100 minority shareholders over the delisting.

Quantum Mutual Fund, had voted against the proposed merger of ICICI Bank and ICICI Securities (I-SEC) during a shareholder meeting in March 2024 saying that the move would be detrimental to the interests of the fund house’s unitholders.  The AMC is a minority shareholders and owns shares in ICICI Bank and ICICI Securities via its Quantum Long Term Equity Value Fund and Quantum ELSS Tax Saver Fund . At that time, the fund house had estimated that the merger will result in a net loss of at least Rs 6.08 crore to its unitholders.

Also read: Shareholders approach NCLT on I-Sec delisting; company notifies exchanges

The current case has been filed in the NCLT Mumbai branch as of May 30 with Parth Jain listed as the advocate.

ICICI Securities said that 83.8 percent of the institutional investors voted in favour of the scheme, while 67.8 percent of the non-institutional investors voted against the demerger.

In an eight-page letter to ICICI Bank and the regulator on April 10, Quantum Mutual Fund's Managing Director and CEO, Jimmy A Patel raised various concerns on the valuation as well as the process put in place.  Quantum estimates that that the swap ratio will lead to a net loss of at least Rs 1,776.7 crore to I-Sec minority shareholders, including around Rs 6.1 crore to the unit holders of the schemes of Quantum MF.

Also read: ICICI Securities delisting saga continues, NCLT defers case to July; here's the story so far

In May 2024, a group of minority shareholders led by Manu Rishi Guptha had filed a class actions lawsuit for the same. The National Company Law Tribunal (NCLT) has currently postponed the case until July 2024.

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