ICICI Securities shareholders approve delisting, clearing path for merger with ICICI Bank

ICICI Securities shareholders give nod: ICICI Securities has received approval from its shareholders to delist its stock, a move paving the way for its merger with parent company and majority shareholder ICICI Bank. 

The brokerage announced that 71.9 per cent of its minority shareholders voted in favour of the delisting, surpassing the required two-thirds majority.

Among public institutional investors, representing a total ownership of 16.68 per cent in the company, 83.8 per cent voted in favour of the delisting. 

However, only 32 per cent of non-institutional public shareholders, holding 8.55 per cent of the company, supported the resolution.

Norges Bank Investment Management, the largest public shareholder with a 3.2 per cent stake, had previously indicated its support for the deal. 

ICICI Bank, holding approximately 75 per cent of the brokerage, did not participate in the vote as its stake was not considered.

ICICI Bank had announced last June its intention to acquire the remaining 25 per cent stake in a share-swap deal, resulting in a 16 per cent increase in its stock price since then. 

The implied offer price stands at about 726 rupees, valuing the stake at around 59 billion rupees ($707.9 million).

However, some minority investors expressed dissatisfaction, as the offer price is approximately 2 per cent lower than ICICI Securities' last closing price of 741.70 rupees. 

Quantum Asset Management, holding a 0.21 per cent stake, voted against the deal and argued that the offer price should be around 940 rupees per share based on comparable multiples among listed peers.

Despite this, the delisting marks the end of ICICI Securities' six-year tenure as a public company, during which its stock price has surged approximately 43 per cent, notably accelerating after the merger plan was proposed. 

Meanwhile, ICICI Bank's stock has seen a four-fold increase over the same period.

(With Reuters Inputs)