SAT asks Fresenius to file fresh reply with Sebi for delisting

The Securities Appellate Tribunal (SAT) has directed Fresenius Kabi Oncology to make a fresh representation to Sebi regarding its delisting plan.

Fresenius Kabi had approached SAT after Sebi refused the firm's proposal to delist from stock exchanges.

In its order dated June 24, the tribunal has asked Fresenius Kabi to file a representation with Sebi detailing the facts and circumstances regarding its delisting plans.

"The Sebi is expected to take a rational and reasonable decision on such representation within a period of four weeks and convey it to the appellant after granting an opportunity of hearing to the appellant," the order said.

Disposing of the appeal at the "admission stage itself", SAT said, "It is made clear that no opinion is expressed by the tribunal on the merit of the case."

According to the tribunal, the company has voluntarily decided to delist its stock and has progressed a lot in this direction as required by law.

"There are about 25 legal formalities/steps to be complied with by the appellant in this regard and we are told that more than 15 such conditionalities have since been complied with," it noted.

Therefore, it is a matter of another couple of months that the delisting process is expected to be completed, the order said.

Further, SAT said, "we are of the opinion that it is apparently a case which stands on different footing than other companies."

Earlier this month, Sebi had asked more than 100 firms including Fresenius Kabi to submit their replies related to non-compliance with the mandatory requirement of 25% public shareholding.

Fresenius Kabi had sold 9% promoter shareholding through an Offer for Sale (OFS), for complying with the minimum public shareholding norms, it later proposed to delist its shares from the bourses rather than selling a further 6% 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 delisted was triggered by certain sudden 'extraneous' events.

The total promoter holding in Fresenius Kabi currently stands at 81%, as against a maximum of 75% as per Sebi's minimum 25% public shareholding requirement for the listed private sector companies.