Healthcare firm Fresenius Kabi Oncology today approached the Securities Appellate Tribunal (SAT) against market watchdog SEBI’s order on minimum 25 per cent public shareholding and sought permission to de-list its shares from the stock exchanges.
Fresenius Kabi Oncology Ltd, which is engaged in the business of cancer research and anti-caner products, is among the 105 companies facing action of SEBI for not having complied to the minimum public holding requirements within the deadline of June 3, 2013.
While the company had earlier sold 9 per cent promoter stake through an Offer for Sale (OFS), one of the special routes provided by SEBI to the companies for complying with the minimum public shareholding norms, it later proposed to de-list its shares from the stock exchanges rather than selling a further 6 per cent to meet the listing requirement.
The regulator, however, refused permission to the company for its delisting plans, as it had benefited from a specially designed OFS route for expanding the public float of shares.
The company has been saying that its decision to get de-listed was triggered by certain sudden ‘extraneous’ events.
The total promoter holding in the company currently stands at 81 per cent, as against a maximum of 75 per cent as per SEBI’s minimum 25 per cent public shareholding requirement for the listed private sector companies.
Fresenius Kabi today approached SAT against SEBI’s move and sought a go-ahead for its delisting plans. However, the matter has been posted for further hearing next week.
Another company, Gillette India, has also approached SAT against SEBI in relation to the minimum public holding norms and the company has been given an interim relief from complying with this requirement till a further direction.
Gillette had moved SAT after SEBI rejected a proposal for complying to the norms, wherein the company had proposed de-classifying one of its senior executive as a promoter entity to bring down the overall promoter shareholding.
The matter is still before SAT and therefore Gillette does not figure among the 105 companies against whom SEBI announced penal actions on June 4.