sebi:WTM/PS/69/CFD/JAN/2014
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Facts / Headnote
Interim order dated June 04, 2013 revoked with immediate effect; Company warned for delayed compliance; no further action initiated as contemplated in paragraph 18 of the interim order.
Provisions invoked
- s. 19
- s. 12A
Parties
- Omaxe Limited
- directors
- promoters
- promoter group
Holding
The interim order dated June 04, 2013 against Omaxe Limited, its directors, promoters and promoter group is revoked with immediate effect, as the Company has now achieved compliance with the Minimum Public Shareholding (MPS) requirements through a combination of Offer for Sale (OFS) and bonus shares. The Company is warned for its delayed conduct but no further action is initiated.
Full text
Page 2 of 4 a. It had taken various steps to meet the requirements of MPS. To start with, the promoters and the members of the promoter group had undertaken an Offer for Sale ('OFS') on May 21, 2013 (Tranche 1), for an aggregate of up to 50,00,000 equity shares of face value of 10 each constituting 2.88% of the total paid up equity share capital of the Company. At the close of the Tranche 1 offer, out of the 50,00,000 equity shares offered only 33,98,385 equity shares were subscribed. b. Thereafter, the Company requested for certain relaxations/ permissions from SEBI. On receiving such permissions, the promoters and the members of the promoter group had undertaken an OFS on June 03, 2013 (Tranche 2), for an aggregate of up to 2,11,60,000 equity shares of face value of 10 each constituting 12.19% of the total paid up equity share capital of the Company. At the close of the Tranche 2 offer, out of 2,11,60,000 equity shares offered only 59,02,454 equity shares were subscribed and the promoters' share holding reduced to 83.79%. c. After this, the promoters and the members of the promoter group had undertaken a third round of OFS on September 27, 2013 (Tranche 3), for an aggregate of up to 1,52,50,000 equity shares of face value of 10 each representing 8.79% of the total paid up equity share capital of the Company. At the close of the Tranche 3 offer, out of 1,52,50,000 equity shares only 42,30,510 equity shares were purchased and the promoters share holding reduced to 81.35%.
Page 3 of 4 g. The number of shares traded on the stock exchanges in the year 2013, have been higher than the number of shares traded in the year 2012, 2011, 2010 and 2008. This shows that the liquidity and the volume of shares of the Company did not have a negative impact even though the Company was not fully compliant with the MPS. The prices of the shares of the Company could therefore not be susceptible to manipulation by the promoters.
Page 4 of 4 6. With the above observations, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(2)(j), 11(4) and 11B thereof and Section 12A of the Securities Contracts (Regulation) Act, 1956, hereby revoke the directions vide the interim order dated June 04, 2013 against the Company, Omaxe Limited, its directors, promoters and promoter group, with immediate effect.
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Source: SecMarx — sebi:WTM/PS/69/CFD/JAN/2014. 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.