Capital markets regulator Sebi on Wednesday exempted Shashi Kiran Shetty Family Trust from the open offer requirement for its proposed acquisition of a 34.41 per cent stake in Allcargo Logistics from one of its promoters.
The trust plans to acquire 51.54 crore shares or a 34.41 per cent stake held by promoter Shashi Kiran Janardhan Shetty, as part of an internal reorganisation of the promoter family's holding for succession planning and estate consolidation, as per Sebi. The Securities and Exchange Board of India (Sebi) said that the proposed transfer would not change the aggregate shareholding of the promoter and promoter group.
The market watchdog noted that the transaction was non-commercial in nature and would not prejudice the interests of the public shareholders of the company in any manner.
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The proposed acquisition would transfer the shares to the family trust without altering the company's total equity share capital. The Trust's trustees and beneficiaries comprise existing promoters, their immediate family members and lineal descendants.
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"I... hereby grant exemption to the acquirer trust, Shashi Kiran Shetty Family Trust, from complying with the requirements of the SAST Regulations, 2011 with respect to the proposed direct acquisition of shares and voting rights in Allcargo Logistics Ltd, by way of the proposed transaction," said Sebi's Whole Time Member Kamlesh Chandra Varshney.
The exemption from the open offer requirement under the Sebi's SAST (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, is subject to conditions, including compliance with applicable laws and filing a report with the regulator within 21 days of completing the acquisition.
The trust must complete the proposed transaction within one year of the year of the order, failing which the exemption will lapse. The exemption is limited to the open offer requirement and does not waive other disclosure and regulatory obligations.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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