• Four prominent proxy firms support delisting
• ICICI Securities shareholders get a chance to become ICICI Bank’s shareholder
22 March 2024 : ICICI Securities shareholders will commence e-voting on the delisting resolution on March 22, 2024. An extraordinary general meeting (EGM) is scheduled for March 27, 2024, following NCLT’s approval where the shareholders will discuss the resolution about the delisting of the company. 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. In support of the deal, ISS an international proxy advisory firm said, given the cyclical nature of ICICI Securities’ business, being part of ICICI Bank with a larger customer ecosystem could bring stability to the stockbroking company’s financial performance.
While a Mumbai-based firm Institutional Investor Advisory Services (IiAS) has supported the resolution on the plea that the implied valuation of ICICI Securities was at a premium of 2% to the closing price on the day prior to the announcement of delisting, and at 23% to the closing price four days prior to delisting. It also stated that banks in India mostly run broking business through privately held arms. To this extent, delisting ICICI Securities and keeping it as a separate legal entity within the ICICI Bank fold will align it with market practices. The other two firms who supported the deal are Mumbai-based Stakeholders Empowerment Services (SES) and Bengaluru-based InGovern.
Under the proposed transaction, public shareholders of ICICI Securities will receive 67 equity shares of ICICI Bank for every 100 equity shares they hold. If the transaction goes through, ICICI Securities will be delisted and will become a wholly-owned subsidiary of ICICI Bank. This exchange ratio has been determined based on a valuation report issued by independent valuers, with a fairness opinion from the merchant banker, ensuring equal value distribution among stakeholders.
The merger is expected to capitalize on the synergies between ICICI Bank and ICICI Securities, driving operational efficiencies and streamlining processes. With ICICI Securities set to become a wholly-owned subsidiary of ICICI Bank, the combined entity aims to better capitalize on synergies in line with the Customer 360 focus of the Bank.
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