New Delhi: Regulator Sebi has 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 Pvt Ltd (TIPL). Under the proposed acquisitions, four acquirer trusts sought 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 Department of Securities and Exchange Board. Exchange of India (Sebi).
The acquiring trusts plan to acquire 6.37 lakh shares of TIPL, which holds a 53.56 per cent stake in the power utility, as a gift. Similarly, the trusts intended to acquire 6.37 lakh shares of TIPL, which holds a 71.25 per cent stake in Torrent Pharmaceuticals. Additionally, the trusts plan to acquire 6.37 shares 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 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 the public shareholders of the three companies.
