The National Company Law Tribunal (NCLT) Ahmedabad on Wednesday approved the delisting of ICICI Securities from the stock exchanges.
On August 21, NCLT Mumbai had also approved the delisting of ICICI Securities Ltd from the stock exchanges.
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The NCLT Ahmedabad bench, led by justice Shammi Khan, while approving the scheme, dismissed two applications objecting to the scheme of delisting.
The tribunal orally rejected the objections filed by minority shareholders. A detailed order is not yet out.
As per the scheme of arrangement, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares they hold.
Post-implementation of the scheme, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank.
The Mumbai bench had dismissed objections raised by minority shareholders and stated that ICICI Securities shareholders will receive 67 ICICI Bank Ltd shares for every 100 shares they hold, as per the approved scheme.
Justice Virendra Singh G Bisht and technical member Prabhat Kumar dismissed the applications of Quantum Mutual Fund and investor Manu Rishi Guptha objecting to the proposed delisting of ICICI Securities.
Minority shareholders had moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT Mumbai order, and the appellate tribunal on October 3 issued a notice to ICICI Securities and ICICI Bank in response to the appeal. The case is pending.
In March, ICICI Securities announced it had received approval from 72 per cent of the public shareholders for its delisting and merger with ICICI Bank. A total of 83.8 per cent of the institutional investors voted in favour of the scheme, while 67.8 per cent of the non-institutional investors voted against it.
In April, Quantum Mutual Fund alleged that the scheme of merger with ICICI Bank was “flawed and bridled with irregularities” in a letter sent to ICICI Bank, the capital market regulator, and stock exchanges. The fund house raised concerns over the valuation and alleged fraudulent practices used to secure the votes.
The Securities and Exchange Board of India (Sebi) had issued an exemption letter to ICICI Bank to allow the delisting of ICICI Securities in June 2023, and the contents are currently confidential.
However, the Bombay High Court and NCLT Ahmedabad have both demanded that the letter be disclosed.
NCLT Ahmedabad had on September 19 issued an order directing ICICI Bank to disclose Sebi’s exemption letter, which was to be submitted by October 3. The high court had also demanded the letter be disclosed in August.
First Published: Oct 09 2024 | 7:14 PM IST