Markets regulator Sebi today exempted two private family trusts related to the promoter group of Havells India from making open offers following proposed share acquisitions.
ARG Family Trust and SKG Family Trust had sought exemption from the obligation of making open offers post acquisition of certain number of shares in Havells India.
Under the proposed share acquisitions, the trusts would hold shares in Havells directly and also indirectly through the promoter group companies -- QEL and QIHL.
In an order, Sebi has granted exemptions to the trusts from making the open offer, saying the proposed acquisitions are only an internal reorganisation of the shareholding of the Havells within the transferors' families for the purpose of a private family arrangement for the benefit of the members of the ARG family and the SKG family.
Besides, there will be no change in control of Havells pursuant to the proposed acquisitions.
"There is no new acquisition of shares by the promoters group and the preacquisition and postacquisition shareholding of the promoter group in the target company (Havells) will remain the same," Sebi noted.
While providing the exemption with certain conditions, the watchdog also said the proposed acquisition should in accordance with the relevant provisions of the Companies Act and other applicable laws.
Subsequently, the trusts are required to file a report with Sebi within 21 days.
Under takeover regulations, acquisition of shares beyond a certain threshold triggers the open offer obligation.
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