In order to proceed with its merger with parent company and main shareholder ICICI Bank, India's ICICI Securities has received approval from shareholders to delist its shares, the brokerage announced in the early hours of Thursday.

A majority vote of around 71.9% among the minority shareholders of the brokerage supported delisting, surpassing the regulatory threshold of two-thirds majority for a resolution to be approved.

In early trading, ICICI Bank saw a 1.2% increase in shares, while ICICI Securities saw a 4.5% decline.

83.8 percent of public institutional investors, who collectively own 16.68 percent of the company, voted in favor of the delisting, compared to only 32% of non-institutional public shareholders, who own 8.55 percent of the company.

As the largest public shareholder in ICICI Securities with a 3.2% holding through one of its funds, Norges Bank Investment Management has previously stated that it supported the merger. 

ICICI Bank does not have a vote because it owns around 75% of the brokerage. Since announcing in June of last year that it would purchase the remaining 25% in a share swap, the company's stock has increased by 16%, bringing the implied offer price to roughly 726 rupees as of Wednesday's close.

ICICI Bank will have to pay roughly Rs 5,900 crore ($707.9 million) for the stake at this rate.

Minority investors are displeased since the offer price is still almost 2% lower than ICICI Securities' most recent close of 741.70 rupees.

Even based on the lowest multiple among the company's listed rivals, Quantum Asset Management, which voted against the sale and owns a 0.21 percent stake in ICICI Securities, believes the offer price should be approximately 940 rupees per share.

Since they made the delisting announcement, the dynamics have shifted. "Ideally, they ought to have withdrawn the offer and made an updated proposal, but that hasn't happened," commented George Thomas, a Quantum Asset associate fund manager.

With the delisting, ICICI Securities' six-year public existence will come to an end. During that time, the company's stock price has increased by almost 43%. Just 8% of that increased throughout the first five years, but after the plan was put forth, it has rapidly increased.

Over these past six years, the stock of ICICI Bank has increased fourfold.