Promoters of Shakti Pumps are permitted by SEBI to transfer shares to a trust without making an open offer
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| Promoters of Shakti Pumps are permitted by SEBI to transfer shares to a trust without making an open offer |
Shakti Pumps obtained permission to transfer 3 trusts for 37.16 percent of its promoter ownership without conducting an open bid.
The promoters of Shakti Pumps were exempted by the market regulator Securities and Exchange Board of India from following Regulations 3 and 4 of the SEBI (Substantial Acquisition of Shares and Acquisitions) Regulations, 2011, which require the promoters to make an announcement, in order to transfer their shares to three separate trusts. Offer in full.
Because the proposed acquisition would not change management control of Shakti Pumps, SEBI granted an exemption. A 56.22 percent share in Shakti Pumps is owned by promoters. Three trusts submitted applications to purchase 37.16 percent of the promoter shareholding: Shakti Sons Trust, Shakti Brothers Trust, and Shakti Future Trust. The company's founders, Dinesh Patidar, Sunil Patidar, and Ankit Patidar, who had respective stakes of 20.5%, 8.6%, and 8.16 percent, would transfer their shares to three trusts.
In accordance with SEBI takeover regulations, a buyer seeking to purchase a 25% interest in a business must make a public offer to purchase the shares. The trusts had requested a waiver to avoid announcing an open offer.
In their application, the promoters said that the intention behind transferring the shares to the trust was to "carry out a restructuring of the promoters' control along with shareholding in the target company." The public's ownership share in the corporation will be unaffected, he said. A one-year exemption from offering for sale was granted by SEBI. The exemption will not be available subsequently if the trusts do not finish the translation within a year.
