ICICI Securities delisting gets nod from institutional investors despite retail resistance; shares fall 4%

ICICI Securities delisting: Despite resistance from retail investors, institutional shareholders gave the green light to the proposal to delist ICICI Securities and merge it with its parent company.

As much as 83.8 per cent of public institutional shareholders voted in favour of the proposal while 67.8 per cent of public non-institutional shareholders voted against the proposal.

Because big institutional investors own a significant portion of ICICI Securities, they were able to push through the proposal. Foreign and domestic institutional investors together own 16.68 per cent of the company. On the other hand, non-institutional public shareholders only hold 8.55 per cent as of December 31, 2023, according to shareholding pattern data on the stock exchange.

Also Read: ICICI Securities wants to delist. Why are mutual funds buying its shares?

Meanwhile, ICICI Securities share price declined over 4 per cent in morning trade on Thursday, March 28 following the announcement by the company. ICICI Securities share price opened at ₹720.80 against the previous close of ₹741.10 and soon slipped about 4.2 per cent to the level of ₹710. 

The stock, however, pared losses and around 9:40 am, it traded 2.64 per cent down at ₹721.55 on BSE.

Also Read: Norges in favour of ICICI Securities delisting

Earlier Proxy advisory firms Institutional Investor Advisory Services (IiAS) and ISS had supported the delisting of ICICI Securities and advised the shareholders of the company to vote in the favour of delisting.

Two other proxy advisory firms, Stakeholder Empowerment Services (SES) and InGovern Research Services had also recommended institutional investors to support the delisting of ICICI Securities.

Also Read: ICICI Securities delisting: Proxy advisors IiAS and ISS recommend voting for delisting proposal

ICICI Securities Delisting: What Happens Next?

ICICI Securities will now delist its shares from the stock exchanges and will merge with the banking giant. 

On 25 June 2023, ICICI Securities announced its delisting plan through a scheme of arrangement. Under this scheme, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares they hold. 

Upon successful implementation, ICICI Securities will operate as a wholly-owned subsidiary of ICICI Bank.

Also Read: Why ICICI Securities is delisting in a growing retail investors market

As on December 31, 2023, ICICI Bank held 74.77 per cent of the equity shares of ICICI Securities and the balance 25.23 per cent equity shares were held by the public.

ICICI Securities said that as a 100 per cent subsidiary, it is expected that both entities would be able to better capitalize on the synergies in line with the customer 360-degree focus of the bank.

Also Read: ICICI Securities to be 100% subsidiary of ICICI Bank upon delisting, share swap deal announced

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