Sebi asks 10 entities to make open offer to Mindvision Capital's shareholders

Capital markets regulator Sebi has directed 10 entities to make an open offer to shareholders of Mindvision Capital Ltd, and pay 10 per cent interest for delay in making such an offer.

The entities have been asked to make the open offer within 45 daysfrom April 15.

Dash Pharmaceuticals, Mandvi Dyes & Chemical, Maxilla Financial Services, Parachit Sales & Marketing, Prime Dyes and Chemical Company, Rajratan Trading, Shingar Dyes & Chemicals, Sparkle Tooth Brush, Tutis Technologies and Vishal Information Technologies are the 10 entities which have been asked to make the open offer.

The entities, who were 'Persons Acting in Concert,' (PAC) failed to make public announcement for open offer, as required under the Sebi (Substantial Acquisition of Shares and Takeovers) norms on several occasions with respect to their acquisition of shares in Mindvision Capital during the period from July 2, 2008 to September 30, 2010, the regulator said in an order passed on Tuesday.

Sebi found that the threshold limit prescribed under the Takeover Regulations had been breached on 12 instances, and the entities were liable to make a public announcement for acquiring shares of Mindvision Capital.

By failing to do so, they violated the provisions of Takeover Regulations.

Sebi said it would be "pragmatic to direct the said noticees to make public announcement for a single open offer at the highest price, i.e. the acquisition which triggers the Takeover Regulations where shareholders are entitled to the highest price".

Hence, as a measure of feasibility and practicality, a single open offer by all the acquirers along with the persons acting in concert would suffice in the facts and circumstances of the case, the regulator noted.

It said that the entities "shall make a public announcement for open offer to the public shareholders of the target company (Mindvision Capital) in termsof the provisions of Takeover Regulations ...within a period of 45 days from April 15, 2020".

Further, the regulator also directed the entities to pay interest at the rate of 10 per cent to public shareholders (who were shareholders of the company as on the date of triggers) of Mindvision Capital.