Suspense crime, Digital Desk : In a significant development, the Supreme Court of India has upheld the decision to delist ICICI Securities, dismissing a plea from minority shareholders who had challenged the valuation and share swap ratio proposed for its merger with parent company ICICI Bank. This ruling provides a major relief for ICICI Securities and paves the way for its full integration with ICICI Bank.

The case revolved around ICICI Bank’s plan to acquire the remaining stake in its subsidiary, ICICI Securities, making it a wholly-owned entity. ICICI Bank already held approximately 75% of ICICI Securities. The proposed scheme involved a share swap where shareholders of ICICI Securities would receive 67 shares of ICICI Bank for every 100 shares they held in ICICI Securities.

While this scheme was approved by the requisite majority of shareholders, including public shareholders, a faction of minority shareholders contested the valuation. They argued that the share swap ratio was unfavorable and undervalued ICICI Securities. They took their grievance to the National Company Law Tribunal (NCLT) and subsequently appealed to higher courts.

The Supreme Court, after hearing the arguments, found no merit in the challenge and upheld the NCLT’s earlier approval of the delisting and merger scheme. The apex court’s decision effectively ends the legal hurdle for the merger process.

With this final clearance, ICICI Securities will cease to be a separately listed entity on the stock exchanges. The merger is expected to create synergies between the banking and broking operations of the ICICI group, potentially leading to more integrated financial service offerings for customers. This move is part of a broader trend of consolidation within large financial conglomerates.

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