Quantum Mutual Fund moves NCLAT against delisting of ICICI Securities

Quantum Mutual Fund has filed an appeal in the National Company Law Appellate Tribunal, Delhi (NCLAT), against the delisting of ICICI Securities Ltd.

Dismissing objections raised by minority shareholders, the National Company Law Tribunal (NCLT) Mumbai had, on August 21, approved the delisting of ICICI Securities Ltd from the stock exchanges.

ICICI Securities shareholders will receive 67 ICICI Bank Ltd shares for every 100 shares they hold, as per the approved scheme.

Justice Virendra Singh G Bisht and technical member Prabhat Kumar dismissed the applications of Quantum Mutual Fund and investor Manu Rishi Guptha, who objected to the proposed delisting of ICICI Securities.

 

ICICI Securities told the tribunal that those opposing the delisting have no locus standi, as the proviso to Section 230(4) of the Companies Act states that any objection to a scheme of arrangement under Section 230 shall be made only by persons holding at least 10 per cent of equity or 5 per cent of the total outstanding debt as per the latest audited financial statement.

Quantum Mutual Fund and Guptha hold 0.08 per cent and 0.002 per cent of the paid-up equity share capital of ICICI Securities, respectively.

ICICI Securities, an affiliate of ICICI Bank, argued that the two applications should be dismissed as they were against the principle of shareholder democracy. It said that the delisting proposal had been approved by 93.82 per cent in value of equity shareholders of ICICI Securities.

Minority shareholders told the tribunal in Delhi that ICICI Securities had breached shareholder privacy and administration rules by sharing shareholder details with ICICI Bank. They alleged that employees of ICICI Bank called and misled shareholders to vote in a particular way in the name of "spreading awareness."

Manu Rishi Guptha had earlier told Business Standard, "We will appeal and won't allow the injustice to fester."

NSE sets Nov 2 as record date for 4-for-1 bonus

The National Stock Exchange of India (NSE) has set November 2 as the record date to determine eligible shareholders for bonus issuance. 

Its board had declared a four-for-one bonus issuance in May. Currently, NSE shares trade at close to Rs 6,000 apiece in the unlisted market. The stock price will drop to Rs 1,500 after bonus issuance. Despite not being publicly listed, NSE has over 15,000 shareholders, with 12,000 being retail investors. 

Market observers view the bonus issuance as a precursor to NSE’s highly anticipated initial public offering (IPO). The recent disposal of proceedings by the Sebi in the co-location case has potentially cleared the path for NSE’s IPO. The NSE has submitted an application to the Sebi for a no-objection certificate (NOC) to file its draft red herring prospectus.

Western Carriers IPO booked 13.88 times 
 

The Rs 493-crore initial share sale of logi­stics company Western Carriers (India) Ltd got subscribed 13.88 times on Wed­nesday. The initial public offering received bids for 28,96,23,957 shares against 2,08,68,467 shares on offer, according to NSE data. 

Northern Arc Capital IPO subscribed 20.15x 
 

The initial public offering of non-bank financial institution Northern Arc Capital Ltd received 20.15 times subscription on the third day of bidding on Wednesday. The share sale received bids for 43,27,38,471 shares against 2,14,78,290 shares on offer, according to NSE data. 

(With inputs from PTI)