Sebi exempts family trusts linked to Vinati Organics from making open offer

Capital markets regulator Sebi Monday exempted two connected private family trusts related to the promoter group of Vinati Organics from making an open offer following their proposed acquisition of additional stake in the firm.

Vinod Saraf Family Trust and Kavita Vinod Saraf Family Trust had sought exemption from the obligation of making open offers post acquisition of certain number of shares in Vinati Organics.

Under the proposed acquisition, Vinod Saraf Trust will be acquiring 13.52 per cent and 12.08 per cent shares of Vinati Organics from promoter Vinod and Kavita Saraf, respectively.

Besides, the Saraf couple jointly own Suchir Chemicals Pvt Ltd (SCPL), which is also a promoter of Vinati Organics.

The proposed acquisition additionally involves Vinod Saraf's transfer of 59.95 per cent stake of SCPL to Vinod Saraf Trust and in same way transfer of Kavita's 40.04 per cent of shares to Kavita Saraf Trust.

In an order, the Sebi has granted exemptions to the trusts from making the open offer, saying the proposed acquisition would provide "a suitable succession to enable inter-generational transfer of the Trust fund among the beneficiaries who are family members".

Further, the regulator said that there will be no change in control of the Vinati Organics following the proposed acquisition.

While providing the exemption with certain conditions, the watchdog also said the proposed acquisition should be in accordance with the relevant provisions of the Companies Act and other applicable laws.

According to the SAST (Substantial Acquisition of Shares and Takeovers) Regulations, an acquirer is required to make a public announcement of an open offer for acquiring shares in case the existing stake goes beyond a certain threshold.