SEBI Orders 5 Entities To Make An Open Offer To Saurashtra Cements’ Shareholders

In Saurashtra Cements violation case of 1998, the Securities and Exchange Board of India (SEBI) has ordered five entities to make an open offer to shareholders of the cement company. The five entities are: Fawn Trading, Willow Trading, Pallor Trading, Fern Trading and Tejashree Trading. In 1998, they had invested in Saurashtra Cements’ preferential issue without revealing that they were part of the promoter group.

In its order, SEBI has asked them to make an open offer of 20% at Rs 33.94 per share to Saurashtra Cements’ public shareholders. The shareholders, at the time of violation, will get an extra interest of 10% per annum since 1998.

“In view of the delay in making the open offer… the above noticees shall, along with the consideration amount, pay interest at the rate of 10 per cent annum, from the date of incurring the liability to making the public announcement till the date of payment of consideration, to the shareholders in the target company on the date of violation and whose shares have been accepted in the open offer, after adjusting dividend, if any, that was paid,” said Prashant Saran, whole-time member of SEBI.