ICICI Securities, a leading brokerage firm, is set to be delisted from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) starting Monday, March 24, 2025. The move follows a recent ruling by the National Company Law Appellate Tribunal (NCLAT), which upheld earlier tribunal orders dismissing petitions challenging the delisting process.
The decision comes after the National Company Law Tribunal (NCLT) approved applications by ICICI Securities and its parent company, ICICI Bank, in August and October last year, clearing the path for the delisting of ICICI Securities from the stock exchanges.
Legal Challenge Dismissed, Shareholders’ Approval Secured
The NCLAT rejected appeals filed by minority shareholders Manu Rishi Guptha and Quantum Mutual Fund, who held minuscule stakes of 0.002 per cent and 0.08 per cent, respectively, in ICICI Securities. The appellate tribunal stated that the petitioners failed to establish any irregularities in the delisting process or its execution.
A two-member NCLAT bench noted that the delisting plan had overwhelming shareholder support, with 93.82 per cent of equity shareholders and 71.89 per cent of public shareholders voting in favor. The tribunal emphasized that the objections raised by the minority stakeholders lacked the necessary shareholding weight to overturn a decision backed by the majority.
ICICI Bank and ICICI Securities maintained that the appeals were contrary to shareholder democracy principles. They argued that the delisting plan had followed all legal procedures and was endorsed by a significant majority, making the objections unfounded.
Regulatory Filings Confirm March 24 as the Record Date
In a regulatory filing, ICICI Bank informed the stock exchanges that NCLAT’s March 10, 2025 ruling had dismissed all appeals against the Scheme of Arrangement involving ICICI Bank, ICICI Securities, and their respective shareholders. The filing further confirmed that all necessary approvals had been obtained, reinforcing the legality of the delisting process.
Additionally, ICICI Securities announced March 24, 2025, as the ‘Record Date’ for determining the public shareholders whose equity shares will be canceled. These shareholders will receive new equity shares of ICICI Bank in exchange, based on the predetermined swap ratio outlined in the delisting scheme.
Impact on Shareholders and Market Implications
With the delisting, ICICI Securities will transition into a fully owned subsidiary of ICICI Bank. This move is expected to streamline operations and create synergy between the parent company and its brokerage arm. For shareholders, the swap ratio ensures that they receive ICICI Bank shares, allowing them to retain investment exposure within the same corporate group.
Market analysts believe this delisting could lead to a revaluation of ICICI Bank’s overall business structure, potentially enhancing its financial positioning. However, some retail investors have expressed concerns over losing direct exposure to ICICI Securities as a standalone entity.
As trading in ICICI Securities stock ceases on March 24, all eyes will be on the performance of ICICI Bank shares, which will now fully absorb the brokerage firm’s market value.
