SEBI Exempts Promoter-Linked Trusts Of Somany Ceramics From Making Open Offer
Promoters of Somany Ceramics want to acquire shares worth 44.26% stake in the firm, which under SEBI norms requires an open offer.
Capital markets regulator Securities and Exchange Board of India has exempted private family trusts related to promoters of Somany Ceramics Ltd. from making an open offer following their proposed acquisition of shares in the Kolkata-based company.
The directive comes after three trusts—Sanrakshith Family Trust, Shakthi Family Trust and Srijan Family Trust—sought exemption from applicability of Takeover Regulation following their proposed acquisitions of shares and voting rights in Somany Ceramics.
Shreekant Somany, one of the promoter of Somany Ceramics, has set up two family trusts—Sanrakshith Family Trust and Shakthi Family Trust—while another promoter Anjana Somany has set up Srijan Family Trust.
Under the proposed transaction, Shreekant Somany will transfer 10.24 percent stake to Sanrakshith Family Trust. He will also give 23.78 percent shareholding to Shakthi Family Trust, while Anjana Somany will transfer 10.24 percent shares to Srijan Family Trust.
Pursuant to this, these trusts will hold 44.26 percent stake in Somany Ceramics.
According to SEBI norms, the proposed acquisition will attract the obligation to make open offer under the Takeover Regulations.
In an order, SEBI granted exemption to the family trusts from making open offer, saying that the proposed acquisitions are intended to streamline succession and promote welfare of the promoter family.
Besides, the proposed acquisition will not affect the interest of public shareholders and there will be no change in control of the companies pursuant to the proposed acquisitions, the capital markets regulator said.
"The pre-acquisition and post-acquisition shareholding of the promoters in the target company will remain the same," it said.
Accordingly, SEBI granted exemption to the acquirer trusts from complying with the Takeover Regulations with respect to the proposed acquisitions in Somany Ceramics.
On Tuesday, Somany Ceramics shares fell 7 percent to Rs 206.00 apiece on the NSE while the benchmark Nifty 50 shed 0.68 percent to end the day at 11,856.80 points.