Exemption from open offer to Torrent Power, Torrent Pharmaceutical affiliated family trusts.
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The Securities and Exchange Board of India (SEBI) has exempted four family trusts linked to promoters from open offers to shareholders of three companies – Torrent Power, Torrent Pharmaceuticals and Gujarat Lease Financing. This exemption has been given in view of the proposed indirect share acquisition in these companies. SEBI gave this order on Tuesday after the Mehta family trusts filed an application with the regulator in July 2023 and sought exemption from certain provisions of the takeover rules. In order to facilitate succession planning, Sudhir Uttam Lal Mehta and Sameer Uttam Lal Mehta created four trusts to settle the family’s stake in Torrent Investments Private Limited (TIPL).
According to three separate SEBI orders, four trusts linked to the acquisition have proposed to indirectly acquire stake in Torrent Power, Torrent Pharmaceuticals and Gujarat Lease Financing – from TIPL – as part of the proposed acquisitions. TIPL is one of the promoters of these companies. The acquiring trust plans to acquire 6.37 lakh shares of TIPL. TIPL holds 53.56 percent stake in the power company.
Similarly, the trusts also want to acquire 6.37 lakh shares of TIPL, which holds 71.25 per cent stake in Torrent Pharmaceuticals. Additionally, the trust plans to acquire 6.37 lakh shares of TIPL, which holds 29.55 per cent stake in Gujarat Lease Financing. While granting exemption from open offer, Sebi said the purpose of the proposed acquisition is to streamline succession and make things smooth for the Mehta family. The proposed acquisition will be in the form of a non-commercial transaction that will not affect the interests of the public shareholders of the three companies.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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