Gillette India surges after Sebi ruling

Gillette India jumped 11.39% to Rs 2,277.90 at 10:51 IST on BSE after Sebi said that shareholding of Poddar Heritage Group would be considered part of public holding subject to fulfillment of certain conditions.

Meanwhile, the S&P BSE Sensex was up 33.43 points, or 0.21%, to 19,897.07.

On BSE, 9,332 shares were traded in the counter as against an average daily volume of 602 shares in the past one quarter.

The stock hit a high of Rs 2,325 and a low of Rs 2,047 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 25 September 2013, falling 3.83% compared with the Sensex's 7.22% gain. The scrip also underperformed the market in past one quarter, declining 3.27% as against Sensex's 6.59% rise.

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

Gillette India during market hours today, 26 September 2013 said that the Securities and Exchange Board of India (Sebi) on Wednesday, 25 September 2013, said that shareholding of Poddar Heritage Group (Poddar group) would be considered part of public holding subject to fulfillment of certain conditions. Currently the Poddar group holds 12.86% stake in Gillette India and is a co-promoter with the Procter & Gamble (P&G) group, which holds 75.9% stake of the company.

Sebi said that Poddar group shall have no special rights in Gillette India through any formal or informal arrangements other than that of normal public shareholder. Sebi added that entities belonging to Poddar group shall not hold any key management personnel position in Gillette India and other group company of Procter & Gamble (P&G) through any formal or informal arrangement.

Sebi said that if entities belonging to Poddar group promoters want to be classified as promoters of Gillette India again in future, they shall be required to make open offer and no exemption shall be given in this regard. The market regulator said that there shall be no acquisition of shares of Gillette India by Poddar group for a period of one year from the date of reclassification of Poddar group as public shareholder.

Sebi also said that it will not insist P&G to make open offer, in view of the facts of the case and the intent behind the transaction i.e. to comply with the minimum shareholding requirement.

In 2012, Gillette India had proposed a three-stage plan to lower the promoter holding to 75%. However, Sebi had turned down Gillette India's plan on the grounds that the shares were not being sold directly to the public. As per the norms stipulated by the market regulator Sebi, privately promoted companies are expected to boost public shareholding to atleast 25%.

Gillette India's net profit rose 20% to Rs 16.47 crore on 16.7% growth in net sales to Rs 392.07 crore in Q4 June 2013 over Q4 June 2012.

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

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