Quantum Mutual Fund files appeal with NCLAT against ICICI stock delisting

Quantum Mutual Fund has filed an appeal before the National Company Law Appellate Tribunal (NCLAT) against an earlier order of the NCLT approving the application for delisting of ICICI Securities of the stock exchanges. National Court of Corporate Law (NCLT) in an oral order on August 21 approved the Scheme of Arrangement for delisting of shares of ICICI Securities. It also rejected objections raised by minority shareholders Quantum Mutual Fund and Manu Rishi Gupta.

Under the plan of arrangement, shareholders of ICICI Securities will receive 67 shares of ICICI Bank for every 100 shares they own.

The plan was earlier approved by 93.8 per cent of the equity shareholders of ICICI Securities. Following the delisting, ICICI Securities will become a wholly-owned subsidiary of the bank.

Ajit Dayal, founder of Quantum Advisors, a sponsor of Quantum AMC, said on Wednesday: “The plan of arrangement proposed by ICICI Bank “Acquiring 25 per cent of the shares of its listed subsidiary ICICI Securities through a share swap is a breach of all known norms of corporate governance.”

Quantum Mutual Fund opposed this scheme and filed an appeal before the Principal Bench of NCLAT in New Delhi against the August 21, 2024 order issued by NCLT Mumbai, which dismissed the fund’s objections and approved the scheme.

In April, Quantum Mutual Fund listed four main reasons for objecting to the plan: valuation concerns, alleged fraudulent means used by ICICI Bank to gather votes, conflict of interest of independent directors and violation of delisting rules.