Sebi today exempted two private family trusts related to the promoter group of diversified Mahindra & Mahindra from making an open offer after shares of the company are transferred directly to them.
Anand Mahindra Family Trust and Mahindra Family Trust-I had sought exemption from the obligation of making an open offer post acquisition of certain number of shares.
The settlor and trustees of the two trusts are members of the promoter and promoter group of M&M. Post completion of the proposed acquisition, the trusts would become part of the promoter entities.
Granting exemption, Sebi said the proposed acquisition is part of internal re-alignment of holdings within the promoter group family and there would be no change in control of the company following the proposed acquisition.
"There is no new acquisition of shares by the promoter group and the pre-acquisition and post-acquisition shareholding of the promoter group in the target company (M&M) will remain the same at 25.33 per cent," the Securities and Exchange Board of India (Sebi) said in an order.
While providing the exemption with certain conditions, the watchdog also said the proposed acquisition would have to be completed within 30 days. Subsequently, the two trusts are required to file a report with Sebi within 21 days.
Under Takeover Regulations, acquisition of shares beyond a certain threshold triggers the open offer obligation.
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