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Sebi exempts Torrent and Guj Lease End of open offers
He says the proposed acquisition to expedite succession
#New Delhi
Regulator Sebi on Tuesday exempted four promoter-linked family trusts from making open offers to shareholders of three companies - Torrent Power, Torrent Pharmaceuticals and Gujarat Lease Financing - following their proposed indirect acquisition of shares in these companies.
The orders came after four Mehta Family Trusts filed applications with the regulator in July 2023 and sought exemption from certain provisions of the takeover regulations.
To facilitate succession planning, Sudhir Uttamlal Mehta and Samir Uttamlal Mehta created four trusts to rationalize the family's stake in Torrent Investments Private Limited (TIPL). Under the proposed acquisitions, four acquirer trusts intended to acquire stake in the target companies (Torrent Power, Torrent Pharmaceuticals and Gujarat Lease Financing) indirectly from TIPL, one of the promoters of these companies, according to three separate orders of the Board of Stock Market and Securities. .
Granting exemption, Sebi noted that the proposed acquisitions are aimed at streamlining succession and promoting the welfare of the Mehta family. The proposed acquisitions will be non-commercial transactions that will not affect or harm the interests of shareholders. PTI
