The Ahmedabad bench of the National Company Law Tribunal (NCLT) approved ICICI Securities’ delisting from the stock exchanges, following an application by ICICI Bank.
Earlier, the NCLT’s Mumbai bench had also sanctioned the delisting.
Led by Justice Shammi Khan, the Ahmedabad bench approved the private lender’s scheme of arrangement, rejecting two objections raised by minority shareholders. The detailed order is still pending, but the objections were orally dismissed.
Once the scheme is executed, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank. The Mumbai bench had previously ruled that ICICI Securities shareholders would receive 67 shares of ICICI Bank for every 100 ICICI Securities shares they hold.
Minority shareholders, however, have contested the decision, moving the National Company Law Appellate Tribunal (NCLAT), which on October 3 issued notices to ICICI Securities and ICICI Bank regarding the appeal. The case remains sub judice.
Despite concerns raised by Quantum Mutual Fund regarding valuation and alleged voting irregularities, ICICI Securities received approval from 72% of its public shareholders in March for the delisting and merger. SEBI granted an exemption to ICICI Bank for the delisting process, though the contents of the letter remain confidential. Both the Bombay High Court and the NCLT have ordered ICICI Bank to disclose this letter, with deadlines previously set by both courts.
(With inputs from agency)
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