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ICICI Securities' Merger with ICICI Bank Faces Valuation Opposition

Sep 8, 2023

By: BlinkX Research Team

The merger between ICICI Securities and its parent company, ICICI Bank, is facing opposition from some stakeholders who believe the valuation of ICICI Securities in the merger is too low. Norwegian pension fund manager Norges Bank and an Indian Portfolio Management Services (PMS) provider are among those planning to vote against the merger.

ICICI Bank, however, has defended the valuation process, stating that it relied on independent experts to determine the share exchange ratio. The proposal offers a premium compared to the market price of ICICI Securities shares, and it exceeds regulatory requirements.

Despite approval from both ICICI Bank and ICICI Securities, the merger still requires consent from shareholders, regulatory approvals, and a 2/3rd majority of public shareholders of ICICI Securities. The goal of the merger is to leverage the strengths of both entities to provide comprehensive financial services to a wider customer base.