Markets regulator Sebi Monday directed Uttar Pradesh based SBEC Sugar's promoter group to make an open offer regarding the purchase of company's shares.
In addition to it, the regulator ordered the firm to pay the consideration amount along with an interest at an annual rate of 10 per cent to the shareholders who were holding shares in the firm.
According to an order, the share holding of SBEC Sugar's promoter group was 54.46 per cent in June 2014 and the group further acquired 9.4 per cent in September 2014, making the total shareholding in the firm to 63.86 per cent.
As the acquisition was more than 5 per cent in a financial year, it had triggered the obligation of promoter group to make a public announcement of an open offer for acquiring shares under takeover regulations, Sebi said.
However, the group failed to make such announcement, Securities and Exchange Board of India (Sebi) noted.
Accordingly, the regulator directed the promoter group -- Umesh Kumar Modi, Kumkum Modi, Jayesh Modi, Longwell Investments, A to Z Holding Pvt. Ltd, Moderate Leasing & Capital Services and SBEC Systems (India) Ltd -- to make an open offer within 45 days from the date of order.
"It is apparent that if an open offer is directed to be made by the noticees (promoter group) in accordance with the provisions of the Takeover Regulations, the same would be beneficial for the investors," Sebi said.
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