AMIT KAPOOR
MANAGER
CORPORATION FINANCE DEPARTMENT
Division of Corporate Restructuring
Tel. Board: 22850451-56, 22880962-70 (Extn: 425)
Email: amitk@sebi.gov.in, Fax: 22829520
CFD/DCR/AK/TO/ 54698 /2005
November 28, 2005
Kanishk Steel Industries Ltd
No.26, (Old 17), 2nd Floor,
Mooker Nalla Muthu Street,
Chennai – 600 001
Dear Sir,
Sub:- Allotment of 80,00,000 equity shares on preferential basis on January 8, 2005
This has reference to your letter dated May 31, 2005 on the captioned subject.
We understand that you have made a preferential allotment of equity shares on January 8, 2005 resulting in the promoter shareholding to increase post issue to 74.02% whereby there is a 4.47% increase in holdings.
It appears that the procedure connected to the preferential issue on January 8, 2005 was completed prior to the amended regulations coming into effect. Thus, it appears that in the instant case, the target company has carried out all the formalities in respect of the preferential allotment as per the then existing Regulations and allotment is in view of the Informal Guidance given prior to the coming into force of the amendment.
With regard to giving a no objection certificate for the stock exchange to allow listing, we may draw attention to the fact that deciding on listing matters is the prerogative of the concerned stock exchange and SEBI does not recommend listing. We only point out the violation of the SEBI Regulations or guidelines etc, if any or our opinion on the applicability of the Regulations. To this extent it is stated that there appears to be no substantive violation of the Takeover Regulations as per the facts and circumstances of this case.
Kindly note that this letter is based on the peculiar facts and circumstances of this matter.
Yours faithfully,
(AMIT KAPOOR)