Sebi lifts curbs on Sayaji Hotels in public holding norms case

Markets regulator Sebi has lifted the restrictions it had imposed on Sayaji Hotels, its directors and promoters, for failing to meet the minimum 25 per cent public shareholding norms.
The curbs have been revoked by Securities and Exchange Board of India (Sebi) after the company complied with the minimum public shareholding (MPS) requirements.
The regulator, through an interim order, had imposed various curbs on the company, its promoters and directors, for not meeting the public holding requirement. It had frozen excess shareholding of the company and barred its promoters from holding any new position on boards of listed firms, among others.

Moreover, the watchdog had warned the firms of further actions including levy of monetary penalties, initiation of criminal proceedings and other possible directions.
In an order dated May 17, Sebi said Sayaji Hotels has complied with the norms by selling 5.13 per cent excess promoter holding in the OFSs (Offer-for-Sale) undertaken on February 12, March 2 and March 3.
Following this, the promoter group has 74.93 per cent and the public shareholders hold 25.07 per cent stake, as per the shareholding pattern available on BSE website as on May 10, 2016.

Sebi said it would be "appropriate and reasonable to vacate the directions issued against the company, its promoters and directors" and has vacated the directions issued vide the interim order against Sayaji Hotels, its directors, promoters and promoter group with immediate effect.

On February 6, 2013, one of the promoters, Raoof Razak Dhanani, had acquired 27.16 per cent stake in the company from Clearwater Capital Partners, which had triggered an open offer.
Accordingly, the promoters had made an offer to the public shareholders of the company which was completed on September 11, 2013. Pursuant to the completion of open offer, the total promoters' shareholding had increased from 67.47 per cent to 79.90 per cent and public shareholding declined to 20.10 per cent on October 3, 2013.