Markets regulator Sebi on Thursday granted exemption to Greenway Advisors Pvt Ltd from the obligation of making an open offer following the proposed acquisition of stake in Sturdy Industries Ltd.
Greenway Advisors had filed an application with Sebi in May 2019 seeking exemption from applicability of Substantial Acquisition of Shares and Takeovers norms in the matter of proposed acquisition of shares and voting rights in Sturdy Industries.
The target company was initially incorporated as a private limited company by the name of Sturdy Polymers Pvt Ltd. In May 1994, it converted into a public limited company and its name was changed to Sturdy Industries Ltd in May 2003.
Punjab National Bank and Allahabad Bank had, in pursuance of the strategic debt restructuring (SDR) scheme of the Reserve Bank of India, acquired 51 per cent of the equity share capital of Sturdy Industries.
In accordance with the SDR scheme, which required the lenders to disinvest at least 26 per cent stake in the target company, the lenders approved sale of 3.93 crore shares, constituting 26 per cent of shareholding of the company to Greenway Advisors.
Subsequently, Greenway made a payment of Rs 2.16 crore to Punjab National Bank for purchasing 26 per cent equity shares of Sturdy Industries.
Punjab National Bank transferred 15.29 per cent equity share capital of the target company to Greenway, but the rest 10.71 per cent shares which are to be transferred by Allahabad Bank have not yet been transferred, Sebi noted.
Noting the observations of takeover panel, Sebi said that in spite of payment having been made by Greenway, transfer of 10.71 per cent shares of Sturdy Industries by Allahabad Bank "could not be completed within the SDR framework only due to the documentation delay at the end of Allahabad Bank."
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