Overview
Small ICICI Securities shareholders have been contacted by ICICI Bank staff members who are pleading with them to support the delisting of the broking unit. Investors are becoming more concerned about the voting process’s integrity and the reasons underlying these proactive attempts.
Engagement Strategies
A number of investors have stated that representatives from ICICI Bank have called and visited their homes, urging them to vote and pushing for delisting. A few stockholders even reported that they were requested to provide evidence of their votes, including images of the confirmation emails they got following the electronic vote.
Context
The delisting of ICICI Securities’ equity shares was approved by the boards of ICICI Bank and ICICI Securities in June. In an effort to combine the two companies, the suggested exchange ratio gives ICICI Bank shares in return for ICICI Securities shares. Retail investors, however, are not happy with the suggested swap ratio.
Hyderabadi engineer Sreenivas K was taken aback when ICICI Bank phoned him, asking him to vote in favor of delisting even though he had previously cast a vote against the idea. Apurba Das, a shareholder in both ICICI Securities and ICICI Bank, had a similar push to vote in favor of delisting from his relationship manager, who followed up with him several times to make sure he did.
A visitor asked about Tarun Balotia’s voting status at his registered residence in New Delhi. Balotia is a software developer from Bengaluru. He was prompted for a screenshot of the electronic voting confirmation even though he had already cast his ballot. These incidents have sparked concerns regarding the strategies used by ICICI Bank to sway shareholders.
Views of Stakeholders
Retail investors are dubious about the proposed swap ratio, even if powerful proxy advice firms have supported the delisting resolution. The creator of Quantum Mutual Fund, Ajit Dayal, expressed surprise at the advice of the advisory firms and emphasized the importance of objectivity in these kinds of judgments.
Data Privacy and Governance Issues
Corporate governance and data privacy are raised by ICICI Bank’s engagement strategies. In order to collect votes, bank staff may be provided with shareholder information, which could violate data privacy laws. Experts advise that these worries might be lessened by using outside experts to handle shareholder outreach.
In summary
The proactive interaction between ICICI Bank employees and ICICI Securities shareholders has generated discussion and prompted concerns regarding the fairness and openness of the delisting procedure. ICICI Bank’s push for delisting and the proposed swap ratio are being closely examined by retail investors in particular. Stakeholders are waiting for more information and reassurance on data privacy and governance requirements as the vote process progresses.
