Sebi says DLF restructuring leeway subject to HC nod

Promoter group firm Rajdhani Investments' stake to go up from 0.01% to 54.08% in DLF

Capital market regulatSebi said the proposed restructuring among promoter entities in DLF will be exempt from open offer obligation, if the deal is approved by the High Court.

The real estate developer had sought an 'informal guidance' from Sebi on a restructuring proposal that would see promoter group firm Rajdhani Investments & Agencies (applicant) stake to go up from 0.01 per cent to 54.08 per cent in DLF.

"With a view to consolidate the holding and streamline the promoter group companies' structure, it is proposed to merge all the 10 transferor companies into the applicant through a composite scheme of merger with the approval of High Court. There will be no change in total promoter group shareholding of 74.95 per cent in DLF as 54.08 per cent shall be held by the applicant and the remaining 20.87 per cent shares shall continue to be held by other existing promoter group entities," DLF had written to Sebi in a letter dated March 24.

"The conditions for availing exemption would be complied with only on approval of the scheme of merger by the High Court. Therefore, the transfer and vesting of shares of DLF in the applicant would be exempt from the open offer obligations?" Sebi replied to the letter.

Informal guidance is a process where an entity can seek advice from Sebi to understand the position of the law. Such advice, however, is not legally binding.