Gillette India (GIL) has moved higher by 10% to Rs 2,245 on BSE after the market regulator Securities and Exchange Board of India (Sebi) said that the shareholding of Poddar Heritage Group would be considered to be part of the public shareholding subject fulfillment of the additional conditions.
The stock opened at Rs 2,047 and hit a high of Rs 2,325 on BSE. A combined 37,965 shares change hands on the counter till 1025 hours on BSE and NSE.
According to Sebi’s letter to GIL, Poddar group shall have no special rights in through any formal or informal arrangements other than that of normal public shareholder and the entities belonging to Poddar group shall not hold any key management personnal position in GIL and the other group companies of Procter and Gamble Co. (P&G).
If entities belonging to Poddar group promoters want to be classified as promoters of GIL again in future, they shall be required to make an open offer, while there shall be no acquisition of shares of the company by Poddar group for a period of one year from the date of reclassification of Poddar group as public shareholder.
The Sebi also said said it will not insist the promoter P&G to make open offer, in view of the facts of the case and the intent behind the transaction i.e. to comply with the minimum shareholding requirement.
GIL is owned by P&G, the world’s largest consumer goods company, which held 75.9% stake, while Poddar and his associates hold 12.9% stake, according to stock exchange filings.
Last year, GIL had proposed a three-stage plan to lower the promoter holding to 75%. Sebi had turned down Gillette India’s plan on the grounds that the shares were not being sold directly to the public.
The stock opened at Rs 2,047 and hit a high of Rs 2,325 on BSE. A combined 37,965 shares change hands on the counter till 1025 hours on BSE and NSE.
According to Sebi’s letter to GIL, Poddar group shall have no special rights in through any formal or informal arrangements other than that of normal public shareholder and the entities belonging to Poddar group shall not hold any key management personnal position in GIL and the other group companies of Procter and Gamble Co. (P&G).
If entities belonging to Poddar group promoters want to be classified as promoters of GIL again in future, they shall be required to make an open offer, while there shall be no acquisition of shares of the company by Poddar group for a period of one year from the date of reclassification of Poddar group as public shareholder.
The Sebi also said said it will not insist the promoter P&G to make open offer, in view of the facts of the case and the intent behind the transaction i.e. to comply with the minimum shareholding requirement.
GIL is owned by P&G, the world’s largest consumer goods company, which held 75.9% stake, while Poddar and his associates hold 12.9% stake, according to stock exchange filings.
Last year, GIL had proposed a three-stage plan to lower the promoter holding to 75%. Sebi had turned down Gillette India’s plan on the grounds that the shares were not being sold directly to the public.
