- Minority shareholders led by Manu Rishi Guptha file lawsuit against ICICI Securities over delisting plan concerns.
- Lawsuit alleges current valuation doesn’t reflect bull market run and improved position of ICICI Securities.
- Minority shareholders raise objections to merger scheme with ICICI Bank, citing irregularities and coercive voting tactics.
A group of minority shareholders, spearheaded by investor Manu Rishi Guptha, has initiated legal action against ICICI Securities regarding the company’s delisting plan. More than 100 shareholders are part of the class action suit, which was filed with the National Company Law Tribunal on April 27. The lawsuit, prompted by concerns over the delisting plan, alleges that the current valuation of ICICI Securities does not adequately consider the bull market trends and the company’s improved position.
The minority shareholders argue that ICICI Securities’ merger scheme with parent company ICICI Bank is flawed and ridden with irregularities, adversely impacting the interests of minority shareholders. Moreover, they accuse ICICI Securities of employing coercive tactics, including allegedly receiving calls from ICICI Bank urging shareholders to vote in favor of the merger scheme. Despite these objections, a significant portion of public shareholders voted in favor of the delisting scheme during a shareholder vote on March 28.
The lawsuit highlights the complexities and controversies surrounding the delisting and merger scheme, raising questions about valuation, governance, and shareholder rights. As legal proceedings unfold, the outcome will have significant implications for ICICI Securities and its stakeholders, shaping the future trajectory of the company’s corporate governance practices and strategic decisions.
