NCLT Ahmedabad approves delisting ICICI Securities from stock exchanges

The NCLT Ahmedabad bench, led by justice Shammi Khan, while approving the scheme, dismissed two applications objecting to the scheme of delisting

The Ahmedabad bench of National Company Law Tribunal (NCLT) on Wednesday approved delisting of broking firm ICICI Securities from the stock exchanges on an application filed by ICICI Bank.

Earlier, the NCLT’s Mumbai bench had also approved the delisting of ICICI Securities from the stock exchanges.

The Ahmedabad bench, led by justice Shammi Khan, while approving the scheme of arrangement of the private lender, dismissed two applications objecting to the scheme of delisting.

The tribunal orally rejected the objections filed by minority shareholders. A detailed order was not out till the press time.

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 said 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 had 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 notice to ICICI Securities and ICICI Bank in response to the appeal. The case is sub judice.  

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 had objected over the concerns of 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 the NCLT Ahmedabad have both demanded that the letter be disclosed. 

NCLT Ahmedabad had on September 19 issued an order to ICICI Bank directing them to disclose SEBI’s exemption letter, which was to be submitted by October 3. The high court had in August demanded the letter to be disclosed.