Market regulator Sebi has allowed members of a family to consolidate their 19.53 per cent stake of Religare Enterprises in Logos Holding, without going in for an open offer.
The Dhillon family had sought exemption from the open offer regulation for transferring its members' aggregate 19.53 per cent stake in Religare to Logos Holding Company.
Logos is an investment company of the Dhillon family.
"(Sebi) hereby grant exemption to the acquirer, Logos Holding Company Pvt Ltd, from the applicability of Regulation 10 of the said Regulations, in respect of its acquisition of 2,49,61,860 equity shares (constituting 19.53 per cent of the paid up equity capital) of the target company, Religare Enterprises Ltd," the market regulator said in an order.
According to takeover regulation 10, an open offer for a minimum of 20 per cent in the target company is required to be made by any entity that has purchased 15 per cent equity.
Logos was formed to organise and consolidate the holdings of individual members of the Dhillon family scattered across listed and unlisted companies into one company.
According to Logos, it is a closely held company belonging to the Dhillon family consisting of Gurinder Singh Dhillon, Shabnam Dhillon, Gurpreet Singh Dhillon, Nayantara Dhillon and Gurkirat Singh Dhillon.
Sebi said that there would be no change in the management or control in Religare, if there is consolidation of shares in Logos.
"The proposed transferors are public shareholders in the target company and post transfer, the acquirer would also be shown as a public shareholder, as undertaken by the acquirer," it added.
The total shareholding of the public in Religare would also not change and the acquirer, a private limited company, is wholly owned and managed by the transferors along with their family members.
"No outsider is a stakeholder in the acquirer other than the members of the Dhillon family," it added.
The market regulator said Logos should complete the proposed acquisition within 30 days from the date of passing of the order and thereafter file a report on the same with the Sebi within 15 days.
