Poddar group to prune stake in Gillette India, cede promoter role to P&G
27 September 2013
The Poddar group will sell nearly eight per cent of its stake in Gillette India, for an undisclosed sum, to reduce holding to less than five per cent and exit as co-promoter of the shaving products company.
The Poddar group, which now owns 12.86 per cent in Gillette India, will also exit as a promoter in Gillette India with a less than five per cent stake after the sale.
P&G, which holds 75.90 per cent in Gillette India, will also sell a marginal stake to bring its holding to 75 per cent to comply with the SEBI regulations on minimum public shareholding.
Saroj K Poddar, co-promoter of Gillette India Ltd (GIL), had earlier offered to sell less of his holding to help the promoter group meet SEBI norms.
However, he was forced to revise the offer after the Securities Appellate Tribunal rejected his appeal against the market regulator denying to change his status as a co-promoter.
The market regulator on Thursday approved the Poddar group's revised proposal for turning a non-promoter investor in GIL.
S K Poddar will now step down as chairman of Gillette India and also give up his board position. His son Akshay Poddar also will relinquish board membership.
After the stock sale, P&G, headquartered in Cincinnati, US, will be the sole owner of Gillette India.
The stake sale by the two promoter groups will help Gillette India meet the minimum public holding norm.
The two promoters will now make a public offer to sell shares as the first step, which will be followed by the termination of the shareholder agreement and compensation payment.
The modalities, such as EGM and postal ballot for getting shareholders' nod etc are being worked out.
On Thursday, GIL's shares shot up 9.38 per cent and closed at Rs2,230 on BSE.