sebi:WTM/KMA/CFD/258/04/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Exemption refused; application for exemption from Regulations 10 and 11(1) disposed of
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 10
- Reg. 4(4)
- Reg. 11(1)
- Reg. 3(1)(l)
- Reg. 4(6)
Holding
SEBI refused to grant Dr. Arvind Kumar B Shah (HUF) and Narit Tradecom Private Limited exemption from Regulation 11(1) for their proposed acquisition of 15,55,90,000 equity shares of Arvind Remedies Limited by preferential allotment.
Full text
Page 2 of 8 the proposed preferential allotment was made for raising funds for the target company’s new project at Irungattukottai, Kanchipuram District, Tamilnadu. It was stated that Dr. Arvind Kumar B Shah (HUF) forms part of the promoter group of the target company and Narit Tradecom Private Limited has been named as a ‘promoter associate company’. It is further stated that the M/s. Arvind Kumar B Shah (HUF) [one of the acquirers] currently holds 39,26,755 shares constituting 1.51% of the paid up capital of the target company and along with other promoters and the persons acting in concert hold 25.32% of the total paid up capital of the target company. The said application stated that the proposed preferential allotment would increase the holding of the acquirers to 32.26% in the target company and that the promoter group’s shareholding would increase from 25.32% to 45.91%. Therefore, according to the acquirers, the aforesaid proposed acquisition would exceed the limits laid down under Regulations 10 and 11(1) of the Takeover Regulations and hence they have sought exemption from SEBI under Regulation 3(1)(l) of the Takeover Regulations inter alia from the applicability of Regulations 10 and 11(1) thereof, on the following grounds. GROUNDS FOR SEEKING EXEMPTION: (a) The proposed subscription by the acquirers is with the overall objective of infusing funds into the target company for meeting its critical and urgent financial needs for financing the new project at Irungattuko
Page 3 of 8 into the fast growing injectibles and soft gel market segments and also consolidate its position in the industry. (e) The acquisition would not be detrimental to the interest of the public shareholders in any manner and on the contrary same will be beneficial to the public shareholders since the target company by undertaking this new project would be expanding its operations, which would be profitable to both the target company and its shareholders . (f) The approval of the shareholders of the target company for the preferential issue has been obtained through postal ballot and the results of the same were published in the newspapers on October 20, 2009.
Page 4 of 8 M/s. Aryaman Commerce Pvt Ltd. - Nil Nil 1 66660000 13.82 Others 1261 130,47,693 5.02 1261 13047693 2.71 Individuals 70105 179159036 68.89 70105 179159036 37.15 NRIs/OCB 215 1995611 0.77 215 1995611 0.41 Sub Total 71581 194202340 74.68 71582 260862340 54.09 Total B 71582 194205340 74.68 71583 260865340 54.09 Grand Total (A+B) 71589 260050000 100.00 71591 482300000 100.0
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/KMA/CFD/258/04/2010. 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.