SUSTANTIAL ACQUISITION TAKEOVER CODE

Originally posted by : suvigya saxena
	Can the co. allot more than 5% warrants to individual strategic investors ? e.g if the capital of the co. is 1.5 crore share can the co. allot 20 lac shares to the particular individual investor i.e. upto 15% without making public announcement. Can the conversion be made within a year time inspit of available time for the conversion i.e 15 months and that to in this case after conversion a strategic investor holds upto 14.99% without makig public announcement as in the case of promoters there is a limit of 15%. Is there any such limit prescribed for non promoters also? your early response to this query is highly appreciated.

Dear Suvigya,

As per my knowledge, i believe that the company may allot 5 % warrant to any individual investor.

However the size of allotment shall be within the Limit of 15%, else it will trigger  the Takeover Code and the investor will need to make a Public Announcement .

the Conversion of the warrants can be made anytime within the maximum limit. Howevre it should never exceed the maximum time frame applicable.

the applicability of 15% is also applicable to non promoters vis-a-vis to promoters.

I hope it shall help u.

Kindly correct if i am missing something .

Take Care  !!!

I agree with urvashi. since upto 5% no public announcement required. since its coming under creeping acquisiton regulation.