sebi:WTM/PS/60/CFD/NOV/2013
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Facts / Headnote
Interim order dated June 04, 2013 revoked with immediate effect; Company warned for delay in complying with MPS norms; no further action initiated.
Provisions invoked
- s. 19
- s. 12A
Parties
- Pranavaditya Spinning Mills Limited
- Indo Count Industries Limited
Holding
SEBI revoked the interim order dated June 04, 2013 against Pranavaditya Spinning Mills Limited, its directors, promoters and promoter group, as the Company had achieved compliance with the Minimum Public Shareholding (MPS) norms through an Offer for Sale on September 12, 2013. The Company was warned for delay in complying with MPS requirements but no further action was proposed.
Full text
Page 2 of 3 10 each, which resulted in reduction of the paid up capital from 12 crore to 1.2 Crore with effect from November 17, 2007. b. With this, the current assets charged to the bankers of the Company remained of no value. In
Page 3 of 3 has submitted that it had made representations to its lenders and CDR for the permission to sell the excess shares held by it in order to comply with MPS. However, the lenders were not willing to forego their charge on the investments of the Company. Later on, Indo Count Industries Limited again approached the lenders and CDR and managed to get the permission to dilute its holding and undertook the OFS on September 12, 2013.
order to protect the exposure of banks, Indo Count Industries Limited was admitted as co- promoter by BFIR with the consent of the other promoter namely Udani group. Indo Count Industries Limited brought in 18.04 Crore as equity capital into the Company and were allotted 1,80,41,280 equity shares at 10 each on August 13, 2008 and thereby its holding became 93.76% in the Company as per the BIFR order. c. Thereafter, due to loss in the derivative transactions, Indo Count Industries Limited was referred to CDR (Corporate Debt Restructuring) in the year 2008 and a package was sanctioned in December 2008 and the scheme is valid till March 2018. As a part of restructuring all the fixed, current assets and investments of Indo Count Industries Limited were charged to the lenders. The fixed assets of the Company are also charged in favour of the lenders of Indo Count Industries Limited. d. Since, June 04, 2010, Indo Count Industries Limited is making representations to all the lenders and CDR about the need to release the investments so as to dilute the shares. However, no lender was willing to forego their charge on the investment of the Company. The lenders had advised Indo Count Industries Limited to seek their consent only when its performance is in line with the CDR approved package. e. Indo Count Industries Limited pursuant to the interim order has again approached to all lenders and CDR with a request to permit the sale of the excess shares held by it in the Company and not t
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Source: SecMarx — sebi:WTM/PS/60/CFD/NOV/2013. 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.