Business
SEBI exempts trust from open offer for 19.85% stake
The Hindu BusinessLine··1h ago
SEBI exempted DKJ Ownership Trust from an open offer for a 19.85 percent S Chand stake, The Hindu BusinessLine said October 13. The trust buys 70 lakh shares from Neerja Jhunjhnuwala, cutting her stake from 22.68 percent to 2.84 percent. Promoter group holding stays at 46.99 percent. Kamlesh Chandra Varshney said the deal will not prejudice public shareholders.
Prism
What It Means For You
- Public shareholders face no change in control; the trust's trustees are promoters or lineal descendants.
- The trust must file a report with SEBI within 21 days of completing the acquisition.
- The transaction must finish within one year or the exemption lapses.
What's Happening
- Neerja Jhunjhnuwala currently holds 22.68 percent in the educational publishing company.
- SEBI said the acquisition was intended to streamline promoter holdings and succession planning.
- The order cited SAST Regulations, 2011 exemption for the proposed direct acquisition.
Open Offer Rules
- Takeover rules normally require an open offer when a buyer crosses specified stake thresholds.
- DKJ Ownership Trust is the proposed acquirer named in the SEBI order.
- The trust will hold 19.85 percent after the share transfer.
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