Acquisition of Thapar group shares exempted

Pradeep Rane
15 October 2001

Mumbai: The Securities and Exchange Board of India (Sebi) has exempted acquisition of shares of group companies by the Thapar brothers in the course of the restructuring of the Thapar group from the open-offer clause of the takeover code.

Under Sebi takeover Regulations 3(1) (1), acquisition of over 15 per cent of shares in a company would require the acquirer to make an open offer for a minimum of 20 per cent of the public holding of the company.

The application for exemption to Sebi follows a family settlement last year among four brothers - Inder Mohan Thapar, Brij Mohan Thapar, Lalit Mohan Thapar and Madan Mohan Thapar, all sons of late Lala Karam Chand Thapar - to reorganise the businesses under the group between themselves, both in terms of ownership and management.

The exemption is granted to eight listed companies of the group - Greaves Ltd, JCT Electronics Ltd, English India Clays Ltd, JCT Ltd, Crompton Greaves Ltd, Ballarpur Industries Ltd, Bharat Starch Ltd and Water Base Ltd.

The Thapar group in its application to Sebi said that a family settlement agreement (FSA) would be entered into among the Thapar brothers-controlled 100 companies and therein the companies would be divided among four different groups.

It said Sebi has granted exemption to the acquirers in regard to the proposed acquisition of the voting rights of the target companies in terms of an FSA. Sebi has also directed the group to complete the acquisition of shares within 30 days of the order and to file a report with the market regulator.