SEBI exempts DKJ Ownership Trust from open offer for 19.85% stake in S Chand
The proposed transfer will change individual shareholdings within the promoter group while leaving its combined stake in the educational publisher unchanged
The Securities and Exchange Board of India (SEBI) has granted exemption to DKJ Ownership Trust from making an open offer to acquire a 19.85% stake in S Chand and Company from promoter Neerja Jhunjhnuwala. The trust will purchase 70 lakh shares from Jhunjhnuwala, who currently holds a 22.68% stake in the educational publishing company.
Following the acquisition, Jhunjhnuwala's shareholding will decrease to 2.84%, while the trust will own 19.85% of the company. SEBI stated that the transaction aims to streamline the promoter and promoter group holdings and facilitate succession planning. The regulator noted that the proposed acquisition is non-commercial in nature and will not harm the interests of public shareholders.
SEBI assured that the trust's trustees and beneficiaries are promoters, their immediate relatives, or lineal descendants, and there will be no change in control of the company. The aggregate shareholding of the promoter group will remain unchanged at 46.99%. SEBI granted the exemption subject to conditions, including filing a report with the regulator within 21 days of completing the acquisition.
The exemption will be valid for one year; if the trust fails to complete the transaction within that timeframe, the exemption will expire.
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