A group led by a Bengaluru-based investment manager has contested ICICI Bank s bid to delist its brokerage arm, ICICI Securities. Despite shareholder support for the merger, retail investors opposed it. The proposed swap ratio and alleged irregularities have sparked objections, with Quantum Mutual Fund urging legal action to protect minority interests.
The private lender s scheme of arrangement to delist ICICI Securities received approval from the subsidiary s public shareholders in a voting process last month.
Ajit Dayal of Quantum Advisors cautions about the dangers of high allocations in smallcap funds due to liquidity concerns and stresses the importance of governance in investments to ensure profitability and mitigate risks in the Indian market. Dayal also says: "European capital for India is also important and European capital is increasingly trying to find alternatives to be in other nations besides China."
Quantum Mutual Fund objects to ICICI Bank s delisting plan for ICICI Securities, citing non-compliance and flawed valuation. Allegations of fraudulent means in achieving majority vote raise concerns about the scheme s integrity.
In June, the boards of private sector lender ICICI Bank and its broking arm ICICI Securities had approved the delisting of equity shares of ICICI Securities