(Bloomberg) -- India’s second-largest private lender ICICI Bank is facing backlash from some minority shareholders over the proposed delisting of its broking unit as they say the valuation is below its fair value. 

ICICI Bank, which owns nearly three-fourths stake in ICICI Securities, last year proposed a share-swap ratio in which investors of the broking unit will receive 67 shares of the parent lender for every 100 shares they own. 

Multiple investors have taken to X, the platform formerly known as Twitter, to raise their concerns about the cheap valuation. Requests made to both the companies for comment weren’t answered immediately. 

The current merger ratio values ICICI securities at a 30% to 77% discount to its other listed peers, according to Quantum Asset Management Company, which holds a stake in both entities. It voted against the resolution.

“This is one of the cheapest valuations I have seen for any delisting in India, let alone for a company as good as this one,” said Nilesh Shetty, a portfolio manager at Quantum Advisors. The transaction reflects poorly on ICICI Bank’s corporate governance, according to Shetty. 

The voting for the resolution ends Tuesday and the company will set up a virtual call to discuss the resolution Wednesday.

“I’m advising all my clients to vote against this resolution, at least they could have valued it similar to how it was done during the IPO six years back,” said Manu Rishi Guptha, a founder at MGR Capital. 

--With assistance from Sidhartha Shukla.

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