Sebi’s clean chit to Grasim-RIL-L&T deal

Our Markets Bureau

Mumbai, Jan 3: The Securities and Exchange Board of India (Sebi) has found nothing wrong in the negotiated deal executed between the Grasim Industries and Reliance Industries Limited (RIL) in which the former has acquired 10.05 per cent stake of L&T from later at a whooping price of Rs 306 as against the market price of Rs 164.

In a reply given to Mr Kirit Somaiya, president of Investor Grievances Forum (IGF) last week, Sebi executive director Mr RM Joshi has clearly stated, “...in terms of the Regulations, any person (Indian or foreigner) who is holding leaa than 15 per cent and intends to cross the threshhold limit of 15 per cent or intends to acquire control of an Indian listed company is obligated to make an open offer to acquire atleast 20 per cent shares from other shareholders of the target company. The said acquisition of L&T shares is a negotiated deal between the two companies and based on the facts available at present, it does not trigger open offer requirements under the regulations”.

Mr Somaiya and his forum has made an issue of the deal between RIL and Grasim and has demanded that the back door entry of Aditya Birla Group on the board of L&T be prevented and Grasim should make an open offer to the small shareholders at the same price at which it acquired 10.05 per cent stake in L&T from RIL.