ICICI Securities Delists its Share and Merges with ICICI Bank

April 01, 2024
Current Context: ICICI Securities has indeed delisted its shares and merged with ICICI Bank on 28th March 2024.
ICICI Securities Delists its Share and Merges with ICICI Bank
  • Here are some key points:
    • ICICI Securities secured the necessary votes to delist its stock, despite opposition from some retail investors.
    • About 71.9% of the brokerage’s minority shareholders voted in favor of the delisting and merger with ICICI Bank, exceeding the regulatory requirement of a two-thirds majority.
    • ICICI Bank, which holds roughly a 75% stake in ICICI Securities, said its shareholder outreach was important to explain the proposal and maximize participation.
    • Last year, ICICI Bank announced it would buy the remaining stake in a share-swap deal.
    • The implied offer price was about 726 rupees as of the close before the delisting.
    • However, some funds and retail investors criticized the deal for being undervalued.
    • Following the merger, ICICI Securities has become a wholly-owned subsidiary of ICICI Bank.

Question:

Q.1 What percentage of ICICI Securities’ minority shareholders voted in favor of the delisting and merger with ICICI Bank?
a. 61.9%
b. 71.9%
c. 81.9%
d. 91.9%

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