PRESS RELEASE
DIVISION OF CORPORATE RESTRUCTURING
In the matter of proposed acquisition of shares of Govind Rubber Limited
Govind Rubber Ltd (hereinafter referred to as "the target company") as a part of a revival package agreed by the lenders, proposes to issue equity shares to the lenders and promoters. The target company is stated to be facing severe financial difficulties and the proposal for rehabilitation of the company is stated to have been approved by the Corporate Debt Restructuring Cell (CDR) constituted under multiple banking arrangement in accordance with the scheme framed by the Reserve Bank of India (RBI).
On behalf of the Promoters and their relatives, group/associate companies (hereinafter referred to as "acquirers"), Shri Vinod Poddar, MD of the target company submitted an application to the Securities and Exchange Board of India (hereinafter referred to as "SEBI") seeking exemption from complying with the provisions of Regulation 11 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as "the Regulations").
The promoter group holds 57.96% in the target company. The shareholding of acquirers (who are part of the above mentioned promoter group) is at present 22.12% and would become 46.74% after the proposed allotment under the CDR package.
This application was referred to the Takeover Panel. The Takeover Panel recommended grant of exemption as sought.
SEBI in terms of Regulation 4(6) of the Regulations has passed an order dated 12.03.2004, granting exemption, to the Acquirer from complying with the provisions of Regulation 11 of the Regulations with regard to the proposed acquisition of shares and voting rights of the target company in the manner mentioned in the application.
The full text of the Order is available on the SEBI website at www.sebi.gov.in.
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