## Quantum Mutual Fund Objects to ICICI Securities Merger
Quantum Mutual Fund has raised concerns about the proposed merger of ICICI Securities with its parent firm, ICICI Bank. The fund believes the scheme is "flawed and riddled with irregularities" and will negatively impact minority shareholders of the broking firm.
Concerns Over Valuation and Irregularities
Quantum Mutual Fund highlights several issues with the merger, including concerns over valuation, alleged fraudulent means used by ICICI Bank to gather votes, conflict of interest of independent directors, and violation of delisting norms.
The fund argues that the valuation reports used to determine the swap ratio were outdated and did not account for market changes that occurred between June 2023 and March 2024. This resulted in inaccurate and unreliable valuations, according to Quantum Mutual Fund.
Furthermore, the fund alleges that ICICI Bank used fraudulent means to gather votes in favor of the merger. This included contacting retail shareholders of ICICI Securities and pressuring them to vote in favor of the scheme.
Impact on Minority Shareholders
Quantum Mutual Fund believes the merger will result in a significant loss for minority shareholders of ICICI Securities. The fund estimates that minority shareholders will lose at least Rs 17,767 million, including Rs 61 million to the unitholders of Quantum Mutual Fund schemes.
Call for Action
Quantum Mutual Fund has urged ICICI Bank to refrain from taking any further steps towards implementing the merger. The fund has also threatened to take legal action, including filing applications before the National Company Law Tribunal (NCLT) and other regulatory bodies.
Conclusion
The objection raised by Quantum Mutual Fund highlights concerns about the fairness and transparency of the proposed merger between ICICI Securities and ICICI Bank. The fund's allegations of irregularities and potential harm to minority shareholders warrant further investigation and action from regulatory authorities.