Minority shareholders of ICICI Securities led by Bengaluru-based investment manager Manu Rishi Guptha have filed a class action suit with National Company Law Tribunal (NCLT) against ICICI Bank’s bid to delist its broking arm from the Indian bourses.
Last month, nearly 72% shareholders approved the scheme of arrangement for the merger of ICICI Securities with its promoter ICICI Bank.
The voting on the merger scheme was done following a NCLT order to consider approving the scheme.
According to the proposed delisting scheme, ICICI Securities shareholders are slated to receive 67 shares of ICICI Bank for every 100 shares held.
ICICI Bank has been 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 cames 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.
Quantum Mutual Fund, which has opposed ICICI Bank’s plan to delist ICICI Securities, is also considering legal action against the bank, ET reported earlier.
Capital markets regulator Sebi has granted ICICI Bank exemption from the delisting regulation involving the requirement of the listed holding company and listed subsidiary being in the same line of business.
ICICI Bank in its defence said the scheme of arrangement was recommended by independent valuers.
In the recent fourth quarter, ICICI Securities reported more than doubling of its net profit of Rs 536 crore and the consolidated revenue from operations stood at Rs 1,543 crore.
Its debt-to-equity ratio in the January-March quarter went up to 4.25 from 3.26 in the corresponding quarter of FY2023. Meanwhile, the debt service coverage ratio was down to 0.18% in the period ended March 31, 2024, versus 0.21% in the quarter ended March 31, 2023.
On Friday, ICICI Securities closed 1.56% lower at Rs 729.65 on NSE.
