Supreme Court Sides with ICICI Bank, Upholds Delisting of ICICI Securities
Supreme Court Rules on ICICI Securities Delisting
In a significant development, the Supreme Court has decided in favor of ICICI Bank, upholding the delisting of ICICI Securities shares. This decision comes after investor Manu Rishi Gupta challenged the delisting process, arguing that the share valuation was unfair and that a different method, known as reverse book building (RBB), could have yielded a better price for shareholders.
Background of the Case
ICICI Securities was delisted from stock exchanges in March, making it a wholly owned subsidiary of ICICI Bank. Gupta’s legal team argued before the Supreme Court that the delisting process was rushed and lacked transparency, describing it as “shocking.” In contrast, ICICI Securities’ lawyers countered by pointing out that Gupta had continued to buy and sell ICICI Securities shares, even as recently as August 2024, demonstrating that he wasn’t entirely averse to the delisting.
Shareholder Vote and NCLT Order
The delisting decision was ultimately driven by a shareholder vote in March, where nearly 72% of participating shareholders approved the merger scheme. This vote followed an order from the National Company Law Tribunal (NCLT) in February 2024, directing the company to consider approving the merger scheme. The meeting saw participation from 161 equity shareholders, including their authorized representatives.
