icici securities delisting: Exchanges seek clarification from I-Sec, promoter ICICI Bank on reports of allegedly influencing minority investors

Indian stock exchanges have sought clarification from ICICI Securities and promoter ICICI Bank on media reports suggesting that retail shareholders of ICICI Securities were being contacted by the employees of ICICI Bank in connection with the delisting of the former.

ICICI Bank is under the fire for allegedly coaxing minority shareholders of ICICI Securities (I-Sec) to support the private lender’s proposal to delist the broking and investment banking arm.

The move comes after some shareholders of ICICI Securities claimed on social media that the bank’s executives contacted them directly, asking them to vote in favour of the resolution that proposes to delist the broking subsidiary.

Also Read | ICICI Bank under fire for allegedly trying to influence I-Sec’s minority investors

The Economic Times had earlier reported quoting lawyers and market participants that such alleged actions could result in regulatory scrutiny of the voting process.

According to the proposed delisting scheme, ICICI Securities shareholders are slated to receive 67 shares of ICICI Bank for every 100 shares held.Meanwhile, ahead of the market opening today, ICICI Securities informed the exchanges about the meeting of its equity shareholders convened pursuant to NCLT order of February 14, 2024 to consider approving the scheme. The meeting was attended by 161 equity shareholders, including authorised representatives. According to the filing, “The combined voting results as per the Regulation 44 of Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 (of Public Shareholders)” saw 71.88% votes in favour of the scheme of arrangement while 28.11% against the resolution.

Earlier, on the question of rationale behind the merger, Vijay Chandok, MD & CEO of ICICI Securities had said that there are several areas of synergy in the merger, like customer sourcing, customer acquisition, technology, and banking solutions to offer to clients, among others. “I think these all together would give us a tremendous advantage as a delisted, unlisted company,” he added.

On March 22, Quantum Mutual Fund informed about voting against the proposed merger of ICICI Bank and ICICI Securities, citing losses of Rs 6.08 crore to its own unit holders if the merger goes through.

In a media release issued on Friday, the fund house said that its Quantum Long Term Equity Value Fund (QLTEVF) and Quantum ELSS Tax Saver Fund (QETSF) own shares in ICICI Bank and ICICI Securities.

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