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Market regulator SEBI has exempted two private family trusts related to the promoter group of Rajratan Global Wires from making an open offer after shares of the company are transferred directly to them.
The Sunil Chordia Family Trust and the Sangita Chordia Family Trust had sought exemption from the obligation of making an open offer post acquisition of certain number of shares in Rajratan Global Wires.
The proposed transaction involves the Sunil Chordia Family Trust acquiring 11.28 per cent shares of the firm from promoter Sunil Chordia and the Sangita Chordia Family Trust buying 13.11 per cent shares from promoter Sangita Chordia.
Both the family trusts had sought exemptions from making open offer as acquisition of shares beyond a certain threshold triggers open offer obligation under SAST (Substantial Acquisition of Shares and Takeovers) norms.
Streamlining succession
While granting the exemption, SEBI said the objective of the proposed acquisitions is to streamline succession and promote welfare of the promoter family.
Besides, there will be no change in control of the company pursuant to the proposed acquisition, the regulator said in a Monday order.
The watchdog, however, said the proposed acquisition should be in accordance with the relevant provisions of the Companies Act and other applicable laws.
Subsequently, both the trusts are required to file a report with the Securities and Exchange Board of India within 21 days from the date of such acquisition, the regulator said.
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