Capital market regulator, Securities and Exchange Board of India (SEBI) has exempted Prima Industries’ promoters from making an open offer with respect to their shareholding crossing 71% due to forfeiture of certain shares. After forfeiture of 20,16,100 equity shares, promoters’ shareholding in the company has risen to 71.36% from 60.13%, thereby triggering the need for making an open offer under SEBI takeover regulations.
As per SEBI, since there is no change in the control or management of Prima Industries, even after forfeiture of 20, 16,100 equity shares, the public shareholding is still in compliance with norms.
Back in August 24, 2012, one of the company’s promoters on behalf of the promoter group filed an application seeking exemption. The management of the company, though, decided to recover the outstanding amount from the shareholders who failed to make the shares fully paid up, but despite final reminder, failed to make the shares fully paid up.
