New Delhi– The Supreme Court on Wednesday upheld the delisting of ICICI Securities, dismissing a petition filed by investor Manu Rishi Gupta, who had challenged the fairness of the share valuation process.
Gupta argued that the delisting, completed in March last year, was conducted hastily and lacked transparency. He contended that using a reverse book-building method could have yielded a higher price for minority shareholders.
The apex court rejected his plea, with ICICI Securities’ counsel pointing out that Gupta had continued trading ICICI Securities shares as recently as August 2024 — a move that undermined his claims of unfair treatment.
Following its delisting, ICICI Securities became a wholly owned subsidiary of ICICI Bank.
ICICI Bank had announced plans to merge with ICICI Securities in June 2023, with shareholders voting on the proposal in March 2024. Approximately 72 percent of shareholders voted in favor of the scheme of arrangement, which included a share-swap offer: 67 shares of ICICI Bank for every 100 shares of ICICI Securities.
The vote followed a directive from the National Company Law Tribunal (NCLT), which had mandated a shareholder meeting in February 2024. The meeting was attended by 161 equity shareholders, including authorized representatives.
Earlier this year, the National Company Law Appellate Tribunal (NCLAT) also upheld the delisting, rejecting appeals from both Quantum Mutual Fund and Gupta. Quantum had raised concerns about the impact of the move on minority shareholders, but the Ahmedabad bench of the NCLT had already dismissed the objections, clearing the way for the merger. (Source: IANS)
