The Securities and Exchange Board of India (Sebi) has revoked the ban on the voting rights of Gillette India promoters after they diluted their holding in the company as per its directions to comply with the minimum public shareholding norms.
In an order issued on Monday, Sebi said promoters Poddar Group and Procter & Gamble Group have completed an offer for sale (OFS) wherein an aggregate 28.58 lakh shares constituting 8.77% of the equity capital of the company were sold.
After the sale, the holding of Poddar Group fell to 4.99% and that of P&G to 74.99%. The balance shareholding of Poddar Group was also re-classified as public shareholding.
Sebi order issued on Monday said, “The regulator hereby revokes the directions issued vide the interim order dated July 5, 2013, against Gillette India, its directors, promoters and promoter group with immediate effect.”
The regulator, however, added the Poddar Group will have no special rights and any entity belonging to the group will not hold a key management personnel position in the company. These were part of the conditions laid down by Sebi in September last year.
On July 5, 2013, Sebi had freezed the voting rights and corporate benefits like dividend, rights, bonus and share splits with respect to the excess of proportionate promoter/ promoter group shareholding of Gillette till such time that the promoter holding is brought down to 75%. The promoters were even barred from holding any new position as a director in any listed entity.
Earlier, the regulator had rejected a three-stage plan put forth by the company that would have seen the promoter holding come down to 75% but less than 5% shares would have been sold to the public. The promoters (P&G and Poddar Group) were then holding 88.76% stake in Gillette.