Norway's Norges Bank Backs ICICI Securities Delisting Proposal

Quantum Mutual Fund opposed the delisting, citing concerns over the swap share ratio, which it perceived as unfavourable to the interests of ICICI Securities' shareholders

Under the scheme of arrangement, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares they currently hold

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In light of Quantum Mutual Fund's dissenting vote against the proposed delisting of ICICI Securities, Norges Fund Investment Bank, the largest public shareholder, has opted to support the proposal set forth by the stockbroking arm of ICICI Bank. This decision was made evident on Thursday, the inaugural day of e-voting, by the foreign fund, which holds a substantial stake of approximately 3.25 per cent in ICICI Securities, according to disclosures available on the website of Norges Fund Investment Bank.

The electronic voting process will continue until March 26th.

The decision made by Norway's Norges Bank has significantly boosted ICICI Securities' efforts to delist itself, as securing approval from two-thirds of the public shareholders is necessary for the resolution to pass. In contrast, Quantum Mutual Fund, with a 0.09 per cent stake in ICICI Securities, cast its vote against the resolution during Thursday's proceedings.

Quantum Mutual Fund opposed the delisting, citing concerns over the swap share ratio, which it perceived as unfavourable to the interests of ICICI Securities' shareholders.

Under the scheme of arrangement, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares they currently hold.

Public shareholders jointly hold approximately 25 per cent stake in the company. The outcome of the resolution now depends on the voting decisions of the remaining public shareholders.

Life Insurance Corporation (LIC) is the second-largest public shareholder, possessing a 2.5 per cent stake in ICICI Securities. Indian insurance companies, including LIC, collectively hold a 3.5 per cent stake, while mutual funds have a 2 per cent stake.

Foreign portfolio investors collectively hold 10 per cent of the shares, while resident Indians own nearly 6 per cent. ICICI Bank is the company's promoter, holding approximately 75 per cent of the shares. 

ICICI Securities unveiled its delisting plan in June 2023. If the resolution is approved, ICICI Securities will transition into a wholly-owned subsidiary of ICICI Bank.