Sebi exempts Sunteck Realty's promoter trusts from open offer

Market regulator Sebi today exempted Matrabhav Trust and Astha Trust from making an open offer to shareholders of Sunteck Realty related to the proposed acquisition of nearly 46 per cent stake in the firm.
The stake-purchase plan involves Sunteck Realty's promoters -- Kamal Khetan, Manisha Khetan and Kamla Khetan HUF-- transferring their holding in the company to the private family trust by way of gift.
Post-acquisition, the combined shareholding of Matrabhav Trust and Astha Trust would increase from nil to 45.9 per cent. This is beyond the 5 per cent limit permissible in a fiscal year and generally obligates the acquirer to make an open offer under Sebi takeover norms.

In an order passed today, the regulator said "there would be no change in the shareholding of the public in the target company (Sunteck Realty) pursuant to the proposed transaction and therefore may not be prejudicial to their interests in the target company."
Accordingly, the regulator has granted "exemption to the proposed acquirers, namely, Matrabhav Trust and Astha Trust from complying with the requirements of... Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 with respect to their proposed acquisition of 2.89 crore equity shares (constituting 45.9 per cent) of the Target Company by way of gift."
The proposed transfer of stake is intended to streamline Khetan family's shareholding in Mumbai-based Sunteck Realty and facilitate succession planning and welfare of Khetan family.

Khetans in their capacity as the trustees of Matrabhav Trust and Astha Trust had filed an application with Sebi seeking exemption from making an open offer.