Gillette India slips after Sebi cracks whip on promoters, directors

Meanwhile, the S&P BSE Sensex was down 235.68 points, or 1.21%, to 19,260.14.

On BSE, 252 shares were traded in the counter as against an average daily volume of 590 shares in the past one quarter.

The stock hit a high of Rs 2,230 and a low of Rs 2,155 so far during the day. The stock had hit a 52-week high of Rs 2,600 on 9 January 2013. The stock had hit a 52-week low of Rs 1,951.10 on 8 March 2013.

The stock had underperformed the market over the past one month till 5 July 2013, sliding 1.96% compared with the Sensex's 0.37% fall. The scrip had, however, outperformed the market in past one quarter, rising 9.36% as against Sensex's 5.67% rise.

The mid-cap company has an equity capital of Rs 32.59 crore. Face value per share is Rs 10.

The Securities and Exchange Board of India (Sebi) on Friday, 5 July 2013, took action against the promoters and directors of Gillette India for the company's non-compliance with the minimum public shareholding (MPS) norms specified by the regulator.

The promoters and directors have been prohibited from dealing in securities of Gillette, either directly or indirectly except for the purpose of complying with MPS norms, till the company takes its public shareholding from current 11.24% to minimum 25%.

The market regulator's order against Gillette comes just days after the latter's appeal was dismissed by the Securities Appellate Tribunal (SAT). The company had filed an appeal with SAT in November 2012 challenging Sebi's refusal to the company's submitted proposal for complying with minimum 25% public shareholding norms.

The SAT in its hearing on 3 July 2013 had also vacated the interim relief it had granted to Gillette on 30 May 2013 three days before the 3 June 2013 deadline to meet MPS norms.

The market regulator's order would result in freezing of voting rights and corporate benefits like dividend, rights, bonus shares, split, etc of the promoter group with respect to excess promoter holding of 55%, as per Sebi's prescribed formula, till such time the company complies with the MPS.

The regulator has also restrained the promoter/promoter group and directors of the non-compliant company from holding any new position as a director in any listed company, till such time Gillette complies with the MPS requirement.

Sebi had earlier passed similar order against 105 companies on 4 June 2013, for failing to comply with the MPS requirement. The interim order issued then did not cover three companies including Gillette, since the matter was sub judice.

Gillette India's net profit rose 15% to Rs 27.16 crore on 12.2% growth in net sales to Rs 356.54 crore in Q3 March 2013 over Q3 March 2012.

Gillette India is a leading company in the personal grooming segment.

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