Sebi grants exemption to family trust linked to Bharat Forge promoter from open offer obligation

NEW DELHI: Markets regulator Sebi on Wednesday granted exemption to Babasaheb Kalyani Family Trust from open offer obligation in respect of its proposed acquisition of shares in seven companies, including Bharat Forge.

The move comes after the applicant -- Babasaheb Kalyani Family Trust -- sought exemption from applicability of SAST (Substantial Acquisition of Shares and Takeover) Regulations in the matter of proposed indirect acquisition of shares and voting rights in seven firms.

These seven firms are -- Bharat Forge Limited, BF Utilities Limited, BF Investment Limited, Kalyani Steels Limited, Kalyani Investment Company Limited, Automotive Axles Limited and Hikal Limited.

Babasaheb Neelkanth Kalyani (BNK), a promoter entity of the seven companies, has settled the family trust by executing a trust deed.

BNK, who directly holds stake and controls in four unlisted private limited companies -- Hibiscus Investment and Finance, Peach Blossom Investment, Rosario Investment, Yokoha Investment -- proposed to transfer his entire shareholding in these firms to the family trust for the purpose of welfare and succession planning of his family members.

The same would result in indirect acquisition of shares and control of the seven companies by the trust.

The exemption was sought on the ground that the objective of the proposed acquisitions is to streamline the succession of BNK and their respective lineal descendants.

In addition, it has been noted that there will be no change in control of the target companies (seven companies) following the proposed acquisition, and pre and post acquisition shareholding of the promoters in these companies will remain the same.

Accordingly, the regulator granted "exemption to the proposed acquirer, viz. Babasaheb Kalyani Family Trust, from complying with the requirements of ...Takeover Regulations with respect to the proposed acquisitions in the target companies...by way of the proposed transactions".