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ICICI Securities falls over 5% as shareholders approve delisting proposal
ICICI Securities share price opened at ₹720.80 against the previous close of ₹741.10.
ICICI Securities share price declined over 4 per cent today (March 28) as shareholders approved a proposal to delist ICICI Securities Ltd, following which it will become a wholly-owned subsidiary of ICICI Bank.
ICICI Securities share price today
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Today, ICICI Securities share price opened at ₹720.80 against the previous close of ₹741.10. The stock slipped about 4.2 per cent to the level of ₹710 and pared some losses to trade 2.64 per cent down at ₹721.55 on BSE.
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ICICI Securities delisting: All you need to know
Institutional shareholders gave green light to a proposal to delist ICICI Securities and merge it with its parent company. This was done despite resistance from retail investors and as much as 83.8 per cent of public institutional shareholders voted in favour of the proposal. Meanwhile, 67.8 per cent of public non-institutional shareholders voted against the proposal.
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As per the terms of the arrangement, shareholders of ICICI Securities will get 67 shares of ICICI Bank against every 100 shares held.
What about Quantum Mutual Fund?
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Quantum Mutual Fund holds a minor stake in ICICI Securities and voted against the proposal as it said that the move would be detrimental to the interests of the fund house’s unitholders. It also said that merger could result in a net loss of at least ₹6.08 crore to its unitholders as ICICI Bank's proposal undervalues ICICI Securities (ISEC) and gives ICICI Bank access to the full business of ISEC below the fair market price.
