Promoter holding SEBI Takeover COde

 Promoter X and his group held 20.10% of the total equity of the target company as on 19.11.2008. His group holding touched 61.65% due to allotment of further shares on 20.11.2008 in terms of Amalgamation Scheme. Regulation 11 of the Takeover Code permits creeping acquisition of additional shares up to 5% in any financial year without public announcement.

 

Clarification is requested as to whether in this case the promoter group is entitled to acquire another 5% of the equity in the target company without public announcement in the financial year 2008-09 itself.

 

Replies (1)

Yes under recent amendment to regulation 11(2)  promoter holdings 55% and above but less than 75% can acquire 5% additional shares (only time and not yearly) without public announcement.

 

But the shares should be purchased from market and that to  not thru bulk deals etc.. as mentioned in proviso

 Priyanka

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