ICICI Securities Delisting Approved Amidst Institutional Support

In a major development for ICICI Securities, institutional shareholders have successfully steered the proposal to delist the company, facilitating its merger with its parent entity. Despite resistance from retail investors, the outcome of the shareholder vote, unveiled on Thursday, revealed a decisive mandate with 71.89 per cent of votes cast in favour of merging ICICI Securities with ICICI Bank post a delisting process.

Under the terms of the agreement, shareholders of ICICI Securities are slated to receive 67 shares of ICICI Bank for every 100 shares held in ICICI Securities.

Public institutional shareholders emerged as staunch supporters of the proposal, with a resounding 83.8 per cent in favour. 

However, among public non-institutional shareholders, only 32 per cent voiced approval. Nonetheless, the substantial institutional holdings in ICICI Securities proved instrumental in securing clearance for the proposal.

As per stock exchange data, foreign and domestic institutional investors collectively hold 16.68 per cent of the broking firm, while non-institutional public shareholders maintain an 8.55 per cent stake as of 31 December 2023.

The Securities and Exchanges Board of India mandates that in cases of delisting and subsequent merger of a subsidiary with its holding company, votes in favour by shareholders of the delisted firm must exceed those voting against by at least two times. Additionally, more shareholders in the listed holding company must have voted in favour than those opposing the proposal.

The delisting vote for ICICI Securities witnessed notable resistance from retail shareholders, with several expressing discontent on social media platforms regarding the manner in which ICICI Bank was soliciting their votes. Some shareholders reported receiving incessant calls from bank employees, urging them to support the proposal.

Despite the retail opposition, institutional support played a decisive role in the approval of ICICI Securities' delisting, underscoring the complexities and dynamics at play in corporate restructuring processes.