ICICI Securities Delists its Share and Merges with ICICI Bank

Current Context: ICICI Securities has indeed delisted its shares and merged with ICICI Bank on 28th March 2024.

• 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%