The market regulator granted PI Industries' promoters an exemption from the takeover regulations, citing the company's plan to simplify succession through the transfer of shares to three trusts.
Market regulator Securities and Exchange Board of India (Sebi) passed this order on 14 August.
A request for the purchase of shares and voting rights in PI Industries by the DoMane Family Trust, RCane Family Trust, Alpha Family Trust, and Beta Family Trust was submitted to the regulator on 15 May 2024.
Salil Singhal and Shefali Khushalani proposed to provide the DoMane Family Trust and the RCane Family Trust each 4.055 per cent of the shares and voting rights.
The proposed transfers of 4.055 per cent of the shares to Alpha Trust and another 4.055 per cent of the shares to Beta Trust were made by Madhu and Pooja Singhal.
Notably, in this process the transferors' children and grandchildren are the trusts' beneficiaries.
Following the transfer, Mayank Singhal, Madhu Singhal, and Salil Singhal would hold slightly more than 29.87 per cent of the shares, with the trusts holding 16.21 per cent of the shares.
53.9 per cent of the shares will remain in the hands of public shareholders, while non-public, promoter stockholders will continue to control 0.01 per cent as they did before the acquisition.
In accordance with the Sebi order, the promoters made the following submissions, the beneficiaries of the acquirer trusts have not been and will not be subject to any transfer, assignment, or encumbrance in the form of a pledge or mortgage.
Further in the event that the acquirer trusts are dissolved, the assets will only be distributed to the beneficiaries of the trusts or their legal heirs and only individual promoters or their immediate relatives or lineal descendants are trustees and beneficiaries of the acquirer trusts.
