Securities market regulator Sebi today revoked restrictions, that it had imposed on Gillette India, company directors and promoters for non-compliance with minimum public shareholding norms, after the FMCG firm achieved the stipulated limit.
Gillette India was earlier jointly promoted by consumer goods giant P&G and Poddar group entities.
Pursuant to various measures including an offer-for-sale (OFS) in November 2013, the promoter group's stake in Gillette was reduced to 75 per cent. Also, the stake of Poddar group was re-classified as public shareholding.
In an order today, Sebi said it is revoking "directions issued vide the interim order dated July 5, 2013, against the company, Gillette India Ltd, its directors, promoters and promoter group, with immediate effect".
On July 5, 2013, Sebi had prohibited promoters and directors of Gillette from dealings in the shares of the firm after it had failed to meet with the public holding limit.
The market regulator had also ordered freezing of all corporate benefits of Gillette's promoters and directors including voting rights, issuance of bonus shares, dividend payments, till the time the norms were complied with.
The regulator in the order said that further action "may not be required to be initiated against the company, its directors and promoters".
In order to meet with the minimum public shareholding requirements, Gillette had made a proposal with Sebi wherein it had said that the promoters of the firm would undertake an OFS for 8.77 per cent stake held by them. This would reduce the Poddar group stake in the company to 4.99 per cent.
Further, the proposal included resignation of S K Poddar and A Poddar from the Gillette board and re-classification of remaining stake of the Poddar group as public shareholding.
On a consideration of the proposal, Sebi on September 25, 2013 had imposed certain conditions subject to the fulfilment of which the shareholding of the Poddar Group would be considered as part of the public shareholding.
The conditions included, among others, that no special rights in the company would be given to the Poddar group and that the entities belonging to the group will hold any key management personnel position in the company.
In December, 2013, the company confirmed with Sebi that it had completed all steps required to achieve compliance with the public holding requirement.
"After these transactions, the total shareholding of the public in the company is at 25 per cent, which is the Minimum Public Shareholding stipulated..." Sebi said in the order.
However, Sebi said Gillette, Poddar Group and the P & G Group will have to comply with the directions imposed in September 2013.
