ICICI Securities shareholders will begin e-voting on March 22, 2024, and an extraordinary general meeting (EGM) is scheduled for March 27, 2024, following NCLT’s approval, to discuss the delisting resolution. Shareholders will commence voting from March 22, 2024 at 9:00 PM till March 26, 2024 at 5:00 PM.
Four prominent proxy advisory firms voted in favour of the delisting of ICICI Securities. ISS, an international proxy advisory firm, believes that ICICI Securities’ larger customer ecosystem and cyclical business nature could provide stability to the stockbroking company’s financial performance.Institutional Investor Advisory Services (IiAS) and Stakeholders Empowerment Services (SES) have supported a resolution to delist ICICI Securities, citing its implied valuation at a premium of 2% to the closing price on the day before the announcement and 23% to the closing price four days prior to delisting.
The delisting will align ICICI Securities with market practices, as banks in India typically operate broking through privately held arms. Public shareholders of ICICI Securities will receive 67 equity shares of ICICI Bank for every 100 equity shares they hold. If the transaction is approved, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank, ensuring equal value distribution among stakeholders. The merger between ICICI Bank and ICICI Securities aims to enhance operational efficiencies and streamline processes, with ICICI Securities becoming a wholly-owned subsidiary, aligning with the Bank’s Customer 360 focus.
