Minority Shareholders Accuse SEBI of Collusion with ICICI Securities in Delisting Dispute

A class-action lawsuit has been filed by over 100 minority shareholders against ICICI Securities, accusing the firm of undervaluing its shares during a planned delisting and alleging collusion with India's capital markets regulator, SEBI. Led by investor Manu Rishi Guptha, the shareholders have taken their grievances to the National Company Law Tribunal (NCLT), seeking intervention on what they deem a deeply flawed valuation process.

At the heart of the dispute is the June 2023 valuation report that ICICI Securities is using to drive its delisting agenda. The shareholders argue that the valuation fails to account for the significant market rally since then and the enhanced financial position of ICICI Securities, which they claim makes the proposed buyout price unfairly low. This undervaluation, they allege, is part of a broader scheme in which SEBI is complicit, facilitating ICICI Securities' attempt to delist at a discount, thereby hurting minority investors.

The dispute stems from ICICI Securities’ plan to delist its shares and eventually merge with its parent company. The delisting process was approved by the boards of ICICI Securities and its parent firm last year, despite vocal opposition from minority shareholders who were concerned about the offered exit price. They claim the company's growth trajectory and positive market conditions were not factored into the delisting proposal.