Shareholders of ICICI Securities have given their approval for the merger with its parent company, ICICI Bank, with more than 70% of the votes in favor of the merger scheme.
The decision follows a National Company Law Tribunal (NCLT) order from February 14, 2024. The meeting, attended by 161 equity shareholders and their representatives, saw strong support for the merger proposal.
Out of a total of 68,048,133 votes cast by public shareholders, 48,917,332 were in favour of the merger resolution, while 19,130,801 were against it, representing 28.11% of the votes.
Following the announcement, ICICI Securities’ shares experienced a decline of over 4% to Rs 710 on the Bombay Stock Exchange, while ICICI Bank’s shares rose by 1.6% to Rs 1101.35.
As per the proposed delisting scheme, ICICI Securities shareholders are expected to receive 67 shares of ICICI Bank for every 100 shares they hold.
It may be noted that the stock exchanges recently sought clarification from ICICI Securities and ICICI Bank in response to media reports suggesting that retail shareholders of ICICI Securities were being contacted by ICICI Bank employees regarding the delisting process.
The bank has faced criticism for allegedly influencing minority shareholders of ICICI Securities to support the proposal for delisting.
Reports indicate that some shareholders claimed on social media that they were approached directly by bank executives to vote in favour of the resolution.
Source Agencies
