ICICI Securities Delisting Greenlit Amid Legal Challenges

The National Company Law Appellate Tribunal dismissed petitions challenging ICICI Securities' delisting. Quantum Mutual Fund and a public shareholder opposed the move, citing share undervaluation. The appellate tribunal rejected their appeal, upholding the scheme of arrangement where shareholders receive ICICI Bank shares. The delisting will make ICICI Securities a wholly-owned subsidiary of ICICI Bank.

The National Company Law Appellate Tribunal (NCLAT) has rejected petitions aiming to challenge the delisting of ICICI Securities from stock exchanges. Petitions were filed by Quantum Mutual Fund and a public shareholder, who questioned the fairness of the share valuation and alleged manipulative practices in the delisting process.

The two-member NCLAT bench, consisting of Justice Yogesh Khanna and Technical Member Ajay Das Mehrotra, delivered the judgment in open court, with a detailed order to follow. The challenge was initially brought against a ruling from the Ahmedabad bench of the National Company Law Tribunal that approved the delisting in August last year.

Under the scheme, ICICI Securities shareholders will receive 67 ICICI Bank shares for every 100 ICICI Securities shares they hold. Despite concerns from some minority shareholders, the delisting plan was approved after a 72% majority vote in March 2024, paving the way for ICICI Securities to become a wholly-owned ICICI Bank subsidiary.

(With inputs from agencies.)