I-Sec shareholders cry foul, delisting plan sparks storm

Discontent about the proposed delisting of ICICI Securities Ltd spilled over at the company's post-earnings meet on Tuesday, as analysts and shareholders challenged its rationale and questioned the swap ratio.

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The investors are upset over the proposal to turn ICICI Securities into a wholly owned subsidiary of parent ICICI Bank Ltd, and made plain their disgruntlement for the first time in a public forum. They believe the company is better off listed and are unhappy with the share swap ratio proposed.

The public shareholders' opinion gains significance since ICICI Securities needs two-thirds of them, who own more than 25% stake, to approve the transaction. Parent ICICI Bank owns 74.85% stake in the company, with the rest being held by public shareholders. The proposal was announced last June.

"I do not see where these synergies are coming from," Vikrant Darak, chief executive officer (CEO) of Finverse Ventures Pvt. Ltd, a Pune-based fintech firm, and a shareholder in ICICI Securities, said during the meet. "Neither in terms of technology-because I believe we are very superior in terms of technology to our peers. In terms of financial muscle, we are very well-placed." ICICI Securities' chief financial officer Harvinder Jaspal sought to explain the benefits of the transaction.