With the intent of consolidating and simplifying its family holding in the three listed entities of Max Group, viz Max Financial Services Ltd. (MFS), Max India Ltd. (MaxIndia) and Max Ventures and Industries Ltd. (MaxVIL),an application was filed with SEBI for consolidating the various shareholdings of promoters under a family owned and controlled trust i.e., Neeman Family Foundation ("Neeman").
SEBI's Takeover Regulations permit open offer exemptions for promoter entities in cases of acquisitions pursuant to inter se transfer of shares amongst qualifying persons being promoters. This is subject to the conditions that such entities are named as promoters in the shareholding pattern filed by the target company for not less than three years prior to the proposed acquisition. Since Neeman, as the acquirer in the consolidation, did not satisfy the abovementioned 3-year requirement, a specific application seeking exemption from open offer requirement was filed with SEBI with respect to one of the steps involved in the consolidation which is not automatically exempt under the Takeover Regulations which would have resulted in Neeman acquiring majority control over one of the promoter entities. Such applications are permitted under the said regulations.
While SEBI has given an approval to Neeman for MFS; however, it has not granted the exemption in case of Max India and MaxVILas Neeman does not meet the stipulated mandate of disclosure as a 'promoter' for three years prior to the proposed acquisition of Max India and MaxVIL.
The promoters wish to clarify that Mr. Analjit Singh and family continue to own and control the entire shareholding currently held by the promoter entities even after the proposed consolidation and the benefit of the exemption granted to MFS should have been made available with respect to Max India and MaxVIL as well.
The promoters also wish to clarify that SEBI has not mandated an Open Offer anywhere in its order. Its order only provides that, if Neeman were to go ahead with the proposed acquisition which breaches the thresholds specified in the Takeover Regulations, only then an open offer requirement would be triggered.
Shares of Max India Ltd was last trading in BSE at Rs.83 as compared to the previous close of Rs. 80.85. The total number of shares traded during the day was 25866 in over 473 trades.
The stock hit an intraday high of Rs. 84.45 and intraday low of 80.65. The net turnover during the day was Rs. 2130022.