sebi:CO/26/TO/04/2003

SEBI · SEBI · 2002-11-27 · G.N Bajpai, Chairman, Securities and Exchange Board of India

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Application for exemption from public offer rejected; acquirer directed to make offer in accordance with SEBI (Delisting of Securities) Guidelines, 2003

Provisions invoked

• s. 4(3)

Regulations

• Reg. 4
• Reg. 21(3)
• Reg. 11(2)
• Reg. 20(5)
• Reg. 3(1)(l)
• Reg. 4(6)
• Reg. 20(3)
• Reg. 21(3)(a)

Holding

SEBI rejected the acquirers' application for exemption from making a public offer under Regulation 11(2) and directed them to make an offer to buy the outstanding public shares in accordance with the SEBI (Delisting of Securities) Guidelines, 2003.

Full text

outstanding shares aggregating to 1.82% of the total share capital of the Delco Remy Electricals India Limited(hereinafter referred to as the "Target company") remaining with the public shareholders. The shares of the Target company are listed at Mumbai & Hyderabad Stock Exchange.

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5. Before proceeding further it is pertinent to note that whereas the first offer was proposed to be made @ Rs. 44.15/- per share ( being the price at which the preferential allotment was made to the acquirers within a period of 12 months prior to the date of the previous application in terms of Regulation 20(3) as existing prior to amendment to the Regulations notified on 9.9.02), the present offer was proposed to be made @ Rs. 10/- which was in terms of amended Regulation 20(5). When this was pointed out to the acquirers, they vide their letter dt. 03.02.03 proposed to revise the offer price upwards to Rs. 44.15/-. However, they requested that they may be allowed to de-list their securities under the old procedure for de-listing in terms of Takeover Regulations prior to the amendment dt. 09.09.02 and not under the SEBI (De-listing of Securities) Guidelines, 2003 (hereinafter referred to as "New Guidelines").

Source: SecMarx — sebi:CO/26/TO/04/2003. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.