ICICI Sec gets delisting nod

ICICI Securities on Thursday secured the votes needed to delist its stock, capping a dramatic week that saw backlash from some unhappy retail investors and reported attempts by parent ICICI Bank to sway votes.

About 71.9% of the brokerage’s minority shareholders voted in favour of the delisting and merger with ICICI Bank, exceeding the regulatory requirement of a two-thirds majority, despite stiff opposition from some investors.

Local media had reported earlier this week that ICICI Bank made multiple attempts to persuade ICICI Securities’ shareholders to vote in favour of the delisting. Reuters has not independently confirmed the details of the report.

ICICI Bank, which holds roughly 75% stake in the brokerage and whose vote is not considered, said on Thursday that its shareholder outreach was “important” to explain the proposal and maximize participation, and was not done to sway voters. Last year, ICICI Bank said it would buy the remaining stake in a share-swap deal, sparking a jump in shares which raised the implied offer price to about ₹726 as of Wednesday’s close.

At this rate, ICICI Bank would pay about ₹59 billion ($707.9 million) for the stake, at a roughly 2% discount to ICICI Securities’ Wednesday close of ₹741.70. However, some funds and retail investors have criticized the deal for being undervalued. Quantum Asset Management, which has a 0.21% stake in ICICI Securities and voted against the delisting, estimates the offer price should be ₹940 per share based on the lowest multiple among the company’s listed peers. “The dynamics have changed since they announced delisting. They should have withdrawn the offer ,” said George Thomas, associate fund manager, Quantum Asset.

About 71.9% of the brokerage’s minority shareholders voted in favour of delisting, merger with ICICI Bank