I have received a mail from an entity ( do not want to disclose the identity) that the Share ratio for merger with ICICI bank is unfair and that we all must come together and vote against this when ever voting takes place. Has anyone also received a similar email ??? While it is evident that the ratio of de merger is unfavourable can we as retail / minority share holders do anything especially when ICICI bank holds 75 Percent of the shares ??
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sorry in the above post the term de merger should be read as de listing
In my opinion i belive the demerger should be be voted against
Yes, I have also received an email. Not sure how they got my email address and know I HOLD ICICI Securities shares
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Can you post the sender’s email id?
And the contents of the email? I’ve not received it… I think.
https://twitter.com/manurishiguptha/status/1698990780390510683?s=20
This twitter post articulates why the offer is unfair to the minority shareholders. I agree with the contents, though its unlikely that the resolution will be opposed by a significant number of shareholders
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Good results.
Most of the brokerage firms reported good numbers for this quarter.
Surprisingly, No update regarding “proposed merger with ICICI bank” in investor’s presentation.
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ICICI sec has long disconnected itself from the delisting ratio price for a bit now. Q3 results were robust. Will the delisting go through? What next?
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In the Q3 FY 24 results announcement they have reiterated that the merger is going ahead. As the bank owns 75% of the equity and there are is no significant minority holding with institutions (who can oppose delisting), it is clear that the merger and de-listing will be implemented as soon as regulator approvals are recieved.
Minority shareholding need not be institutions. Retail investors are minority shareholders. Retail investors have voting rights.
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ICICI SECURITIES Q3 FY 24 Updates -
Revenues - 1323 vs 879 cr
EBITDA - 911 vs 549 cr
PAT - 466 vs 281 cr, up 66 pc !!!
Revenues breakup -
Retail Equity - 754 cr, up 50 pc
Distribution revenues - 174 cr, up 5 pc
Advisory services - 97 cr, up 102 pc
Institutional Equity - 90 cr, up 94 pc
Others - 206 cr, up 81 pc ( from investments and trading )
Breakdown of retail equity segment -
Cash broking - 37 pc vs 34 pc
Derivatives broking - 16 vs 20 pc ( grew by 22 pc )
Retail allied revenues - 47 vs 46 pc
MTF book @ 9900 cr vs 6300 cr YoY, MTF Mkt share @ 22 pc
Breakdown of distribution revenues -
MF distribution - 114 vs 100 cr
Life Insurance distribution - 7 vs 2 cr
Others - 53 vs 45 cr
Total wealth clients AUM - 3.2 lakh cr vs 1 lakh cr in Mar 19
Total loans disbursed via I-Sec platform @ 2170 vs 1000 cr ( YoY)
Market share -
Retail Equity - 13 pc
MTF - 22 pc
Retail Derivatives - 3.5 pc
Commodities - 7.5 pc
SGB - 9 pc
ETFs - 17 pc
SIPs - 3 pc
ICICI Bank - the parent intends to delist the company. To delist the company, it would require 66 majority vote of the minority shareholders - which is unlikely to play out - IMHO
The proposed swap ratio of 0.67 : 1 ( ICICI Bank shares : ICICI Sec shares ) is unlikely to find takers as the Mkt price of ICICI Sec is already far above the price for the proposed swap to materialise
I am betting on either the delisting not going through or ICICI BANK significantly revising the delisting offer - upwards
Disc: hold a small tracking position, not SEBI registered, biased
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FIIs + DIIs together hold aprox 17 pc of shares. For de-listing to go through, 90 pc of total shareholders or 66 pc of minority shareholders have to agree
To me, it looks very very unlikely unless ICICI Bank significantly revises its offer price
Disc: holding
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Received a email yesterday regarding the commencement of voting from 22 Mar onwards. Can someone elucidate the process of how to register for voting ,if necessary, and the methodology to be followed subsequently for actually voting. In any case the terms of de merger are against the share holders of ICICI Securities and extremely favorable for ICICI bank. I am sure the same entity which had written an email to all the share holders of ICICI Securities will again be active and we will hear from them.
Now the fate of ICICI Sec is sealed. Looks like it will be merged with the bank as per their plan. Unfortunate.
Shareholders voting begins for proposed merger. Cast your vote now!!! It hardly takes a minute.
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Mutual Funds have bought close to Ten Lakh shares during the month of February at an average price of about Rs. 800. Why will they support the resolution & incur a loss, more so when they collectively have the power to prevent the resolution from going through. How will they justify voting for the resolution to their investors.
In any case, it makes sense to make the effort to vote & defeat the resolution as it is unfair.
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Agree in voting against the resolution! Since they got listed 5 years ago @ INR 520 they’ve hardly generated the results enough to beat the broader indices, neither extravagant dividend. So what are the investors getting out of the merger?! Also defeats the purpose of getting listed, if in 5 years they are folding the tent!
All of my family members have bank account with ICICI and holding shares of ISEC in different DEMAT accounts with different brokers.
We got calls from ICICI bank executives explaining that the delisting of ISEC by offering ICICI bank shares is kind of profitable and vote for the resolution.(One gentleman from ICICI bank Mysore tried to say it is your wish to vote for or against and he is just informing).
ICICI bank rigorously pursuing the uninformed retail to vote in favor, probably they would have looked up the PAN in bank database and ISEC share register and started this unethical practice.
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Got a similar call, but from ISEC.