NCLT okays ICICI Securities delisting, shares plunge 7.44%

Shares of ICICI Securities, which went public with an initial public offering (IPO) in April 2018, fell by 7.44 per cent to Rs 785.95 on the exchanges on Wednesday.

ICICI Securities shareholders will receive 67 ICICI Bank shares for every 100 shares they hold as per the approved scheme.

The National Company Law Tribunal (NCLT), Mumbai, on Wednesday approved the delisting of ICICI Securities Ltd from the stock exchanges, rejecting the objections raised by certain investors. Shares of ICICI Securities, which went public with an initial public offering (IPO) in April 2018, fell by 7.44 per cent to Rs 785.95 on the exchanges on Wednesday.

The proposal, earlier approved by shareholders in March 2024 with 72 per cent of minority shareholders in favour, involves ICICI Securities becoming a wholly-owned subsidiary of ICICI Bank. ICICI Securities shareholders will receive 67 ICICI Bank shares for every 100 shares they hold as per the approved scheme.

The delisting move which has come six years after the firm went public with an IPO, has upset some investors.

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ICICI Securities announced its delisting and merger plan with ICICI Bank in June 2023. Despite the approval, some shareholders including Manu Rishi Gupta and Quantum Mutual Fund opposed the delisting, arguing that the share swap would harm minority shareholders.

Shares of ICICI Securities listed at Rs 435 on the exchanges, a 16.35 per cent discount to the issue price of Rs 520, in April 2018. The Rs 4,017-crore IPO got a poor response from investors as the issue saw only 78 per cent subscription on the final day of the bidding process. However, including anchor allotment, the issue received a total of 87.9 per cent bids.

ICICI Securities had told the tribunal that those opposing the delisting have no locus standi as the Companies Act says that any objection to a scheme of arrangement under Section 230 of the Act should be made only by persons either holding at least 10 per cent of equity or 5 per cent of the total outstanding debt, as per the latest audited financial statement.

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