Sebi exempts family trusts related to Borosil, Symphony from open offer obligation

Markets regulator Sebi has granted exemption to two family trusts linked to Borosil Glass Works from making an open offer in the proposed acquisition of shares in the company. The regulator had received an application from Pradeep Kumar Family Trust and Bajrang Lal Family Trust seeking exemption from the applicability of SAST (Substantial Acquisition of Shares and Takeovers) in the matter of proposed acquisition of shares and voting rights in Borosil.

Subsequent to the proposed transactions, the trustees of the family trusts wil be the legal owners of 54.35 per cent of the total equity share capital of Borosil. The promoters and promoter group will continue to hold an aggregate of 72.85 per cent of the total equity share capital of the firm, while public shareholders will continue to hold an aggregate 27.15 per cent of the shareholding in the company.

In a separate order, Sebi granted exemption to two family trusts linked to Symphony Ltd from obligation of making an open offer in the proposed acquisition of shares. The family trusts -- Rupa Bakeri Family Trust and Achal Bakeri Family Trust -- had filed applications with Securities and Exchange Board of India, seeking exemption from compliance with SAST norms for proposed acquisition of shares and voting rights.

Considering the applications, Sebi through two separate orders granted exemption to the trusts from making an open offer as there will be no change in control of the firms pursuant to the proposed share purchase. In addition, the regulator noted that the total pre-acquisition and post-acquisition shareholding of the promoters in the firms will remain the same.

This is subject to certain compliance with the relevant provisions of the Companies Act, Sebi said in both the orders..

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