Agroup of minority shareholders led by investor Manu Rishi Guptha have filed a class action suit with the National Company Law Tribunal against ICICI Securities on the delisting plan, Moneycontrol reported citing sources. More than 100 shareholders are a part of the class action suit, which was filed on on April 27, the report added.
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Business Today was unable to verify the report independently.
According to the minority shareholders, the current valuation is based on a report from June 29, 2023. They allege that it is does not factor in the bull market run during the period and improved position of ICICI Securities.
As per section 245 of the Company Act 2013 such a suit may be filed (where one or several persons join together and sue on behalf of a larger group of person) if they are of the opinion that the management or conduct of the affairs of the company are being conducted in a manner prejudicial to the interests of the company or its members or depositors.
On April 10, Quantum Mutual Fund, a minority shareholder, had objected to the scheme of merger of ICICI Securities with parent firm ICICI Bank, saying it is “flawed and bridled with irregularities” and will adversely affect minority shareholders of the broking firm.
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The minority shareholders also alleged that ICICI Securities has followed “illegal” methods to get the voting in their favour. The shareholders said they received calls allegedly made by ICICI Bank on behalf of ICICI Securities coaxing them to vote in favour of the merger scheme.
On March 28, shareholders of the broking firm voted on the proposal to delist the company and make it a wholly-owned subsidiary of parent entity ICICI Bank. During voting, 83.8 percent of institutional investors voted in favour of the scheme, while 67.8 percent of non-institutional investors voted against it. Overall, 72 percent of public shareholders voted in favour of the delisting scheme.
As per the scheme, shareholders of ICICI Securities would receive 67 shares of ICICI Bank for every 100 equity shares held in ICICI Securities.
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Last year, the boards of both entities approved the delisting and merger scheme. There were reports that some investors in ICICI Securities were against the scheme over valuation concerns.
