Linde India seeks SAT relief on valuation exercise ordered by Sebi

Market regulator had directed NSE to appoint a valuer in its interim order in April

Industrial gases and engineering firm Linde India has sought relief from the Securities Appellate Tribunal regarding the valuation diktat stated in an order passed by the Securities and Exchange Board of India (Sebi).

The tribunal may deliver its final decision on the matter on Tuesday.

The issue involves various agreements and transactions between Linde India and its related parties, Praxair India and Linde South Asia Services.

Sebi directed the company to seek shareholder approval if the aggregate value of these related-party transactions exceeded materiality thresholds.

The regulator also instructed the National Stock Exchange to appoint a registered valuer to assess the business’ valuation.

In its plea, Linde India has requested a stay on the ongoing valuation exercise. The counsel for Linde argued that the valuer had requested details that are price-sensitive and could pose confidentiality risks if shared with a third party.

The counsel further highlighted that Sebi is pressuring the valuer to complete the valuation process within a strict 40-45-day time frame. However, the multinational company has expressed concerns that meeting this deadline will be extremely challenging. Providing all the requested details on a retrospective basis, the counsel argued, would be a “monumental” task.

He also added that Sebi had directed Linde India to share the valuation report and related observations with the exchanges — posing risks to share prices if the report does not accurately represent the true picture.

Linde India has requested a stay on the valuation exercise until October 15, when an earlier plea by the company is scheduled to be heard by the tribunal.

The Sebi investigation into Linde India is ongoing. In an interim order issued on April 29, Sebi noted that it will consider punitive measures once the investigation reaches its conclusion.

The counsel for Sebi argued that halting the valuation exercise would be “prejudicial to public policy” and assured that confidentiality would be maintained on price-sensitive information.