SEBI turns down Kamat plea on open offer

MUMBAI, July 21: SEBI has refused to grant an exemption to the promoters of Kamat Hotels (I) from making an open offer to subscribe to the shares of the company. Kamat Hotels, the target company, had applied to Sebi seeking exemption from the open offer obligations under the Takeover Regulations, 1997, for the allotment of 8,62,500 shares of the company to its promoters, thereby increasing the promoters’ stake to 65.10 per cent from 62.30 per cent.

Kamat had come out with its maiden public issue of 51,00,000 equity shares in 1994. Some shareholders who had subscribed to the issue did not pay up the allotment/first and final call money with interest. The firm decided to forfeit a total of 8,62,500 held by such shareholders. It proposed to re-issue the forfeited shares to its promoters and their business associates and received a `no objection certificate’ from the BSE for it.