The Supreme Court on Wednesday rejected a petition filed by investor Manu Rishi Gupta and upheld the delisting of ICICI Securities. According to The Economic Times, the investor had raised concerns about the fairness of the share valuation process during the delisting.
Gupta argued that the use of a reverse book building (RBB) method might have fetched a better price for shareholders. He called the delisting process “opaque” and “shocking,” saying it was carried out in a rushed manner.
However, in response, the counsel representing ICICI Securities pointed out that Gupta had continued to trade in the company’s shares, even as recently as August 2024, The Economic Times reported.
ICICI Securities has now become ICICI Bank’s wholly owned arm
ICICI Securities was officially delisted in March 2024. With this move, the company became a fully owned subsidiary of ICICI Bank.
With the Supreme Court’s latest ruling, the delisting process now stands legally confirmed.
Shareholders voted in favour of merger
Earlier, on 14 February, the National Company Law Tribunal (NCLT) had directed a meeting of shareholders to decide on the merger scheme. The meeting took place on 28 March 2024.
According to filings made to the stock exchanges, the delisting had strong shareholder backing—nearly 72 per cent of shareholders voted in favour of the merger of ICICI Securities with its promoter, ICICI Bank. The meeting was attended by 161 equity shareholders, including authorised representatives.
According to Mint, the delisting and integration of ICICI Securities with ICICI Bank’s core banking operations aim to:
- Streamline operations by consolidating financial services under a single umbrella;
- Enhance corporate governance through unified oversight; and
Boost efficiency and competitiveness in the financial services sector by leveraging shared resources and synergies.