Sebi exempts 4 family trusts from open offer requirements
These are linked to promoters of Torrent Power, Torrent Pharma and Guj Lease Fin
New Delhi: Regulator Sebi has exempted four family trusts linked to promoters from making open offers to the shareholders of three companies -- Torrent Power, Torrent Pharmaceuticals and Gujarat Lease Financing -- following their proposed indirect share acquisition in these firms.
The orders came after four Mehta Family Trusts filed applications with the regulator in July 2023, and sought exemption from certain provisions of takeover regulations.
In order to facilitate succession planning, Sudhir Uttamlal Mehta and Samir Uttamlal Mehta created four trusts to streamline the family’s shareholding in Torrent Investments Pvt Ltd (TIPL). Under the proposed acquisitions, four acquirer trusts intended to acquire interest in the target companies -- Torrent Power, Torrent Pharmaceuticals and Gujarat Lease Financing -- indirectly from TIPL, one of the promoters of these firms, according to three separate orders by the Securities and Exchange Board of India (Sebi).
The acquirer trusts plans to acquire 6.37 lakh shares of TIPL, which holds a 53.56 per cent stake in the power firm, by way of gift. Similarly, the trusts intended to acquire 6.37 lakh shares of TIPL, which owns 71.25 per cent stake in Torrent Pharmaceuticals. Also, the trusts plan to acquire 6.37 stocks of TIPL, which has a 29.55 per cent stake in Gujarat Lease Financing.
Granting an exemption from the open offer, Sebi noted that the proposed acquisitions are intended to streamline succession and promote the welfare of the Mehta Family. The proposed acquisitions will be non-commercial transactions that will not affect or prejudice the interests of the public shareholders of the three companies.
