New Delhi: Markets regulator Sebi today lifted the restrictions imposed on Swaraj Automotives, its directors and promoters after the company complied with the the 25 per cent minimum public shareholding norms.
The Securities and Exchange Board of India (Sebi), on July 19, 2017, had ordered freezing of voting rights and all corporate benefits arising out of its excess stake in the company.
Also, it had prohibited the promoter and director of the company from dealing in the shares of Swaraj Automotives except for meeting the minimum 25 per cent public shareholding limit till the time of their compliance to this requirement.
Following this, the firm made four attempts to reduce promoter shareholding resorting to the Offer for Sale mechanism, the Securities and Exchange Board of India (Sebi) said in an order passed today.
The regulator said that the firm’s public shareholding as of November 22, 2017 stands at 25 per cent, which is in compliance with the regulatory requirements.
“The mode of compliance has also been adhered to since the offer for sale mechanism is one of the modes specified by Sebi Regulations for complying with the minimum public shareholding requirement,” the regulator noted.
Accordingly, Sebi has revoked the directions issued through an interim order passed on July 19, 2017 against Swaraj Automotives, its directors, promoters and promoter group, with immediate effect.
Till September 2015, Mahindra and Mahindra Ltd and Punjab State Industrial Development Corporation held 74.18 per cent stake in Swaraj Automotives, while that of public holding was at 25.82 per cent in compliance with Sebi’s minimum public shareholding norms.
Later, b4S Solutions acquired the entire equity stake held by the promoters of Swaraj Automotives. In addition, it acquired additional stake in the firm under the open offer and as a result, it became the new promoter from February 2016.
Following the transaction, the public shareholding in Swaraj Automotives fell below the minimum permissible level of 25 per cent on February 2, 2016.