Sebi exempts Sibar Autoparts promoters from making open offer

Sebi today granted exemption to Sibar Autoparts five promoters from making open offer related to a proposed acqusition of shares that would hike their stake in the company from 25.47 per cent to 56.62 per cent.
The "exemption" has been granted to Sibar Autoparts promoters -- P Madhupratap, P Sugunamma, P Annapoorna, P Ravichandra and P Charitha -- for their proposed acquisition of 40 lakh shares of the company by way of preferential allotment against conversion of unsecured loan of Rs 4 crore.
The acquisition would raise the shareholding of the promoters from 25.47 per cent to 56.62 per cent on account of the conversion of unsecured loan into equity in their favour.

This increase of the promoters' stake would mandate a public offer as stipulated under Sebi takeover norms.
In its order today, the Securities and Exchange Board of India (Sebi) said that the equity shares proposed to be allotted to the promoters would be locked in for a period of three years as required under norms.
"There would also be no change in control over the target company consequent to the proposed acquisition as shares are proposed to be acquired by acquirers who are part of the promoter group who are already in control," Sebi said.

It also said that pursuant to the proposed allotment, the public shareholding in the company would stand at 40.53 per cent which is above the minimum statutory level of 25 per cent prescribed under the rules.

Following the purchase of shares the promoter group shareholding/voting rights in Sibar Autoparts would increase 30.18 per cent to 59.47 per cent.
Sebi said the exemption is granted subject to condition that the allotment of shares as proposed would be completed within a period of 15 days of the date of this order.
In addition, on acquisition of the shares, the company would have to file a report with Sebi, within 21 days from the date of the allotment.