Sebi Grants Neterwala Family Trust Exemption in Uni Abex Stake Acquisition

Sebi has allowed the Neterwala Family Trust to acquire a controlling stake in Uni Abex Alloy Products without needing an open offer, as it is an internal restructuring. The family trust will own 63.48% of the company after the transaction, which aims at succession planning and consolidating family holdings.

The Securities and Exchange Board of India (Sebi) has granted permission to the Neterwala Family Trust to acquire controlling stakes in Uni Abex Alloy Products, bypassing the requirement for an open offer to public shareholders. This development comes as the transaction constitutes an internal restructuring rather than a commercial acquisition.

The proposed transaction entails the transfer of shares of Chemicals and Ferro Alloys Pvt Ltd and other entities in Uni Abex Alloy Products by its promoter, Feroze D Neterwala, to the family trust. Consequently, the trust will command a 63.48% stake in Uni Abex Alloy Products.

Sebi's order emphasized that the transaction is part of an internal reorganization within the promoter family to streamline succession planning and family holdings consolidation, thus maintaining that it will not adversely affect public shareholders' interests. The regulator confirmed there would be no change in the company's control, nor in the promoter shareholding of 63.63%, leaving public holdings steady at 36.37%.