SAT to hear Grasim appeal on SEBI fiat today
MUMBAI NOV. 20. The Securities Appellate Tribunal (SAT) will hear tomorrow an appeal filed by Grasim Industries seeking interim relief against the Securities and Exchange Board of India's (SEBI) directive to put on hold the open offer of the Aditya Birla Group company for up to 20% stake in Larsen and Toubro. In its petition filed before the SAT, Grasim said "A grave and irreparable harm will be caused to Grasim by SEBI's order as it has followed all the legal requirements, including the takeover code while making the open offer". The company further said that it had also made huge financial provisions for going ahead with the offer, including an escrow account of Rs. 117.500000000 as and by way of lien on mutual fund units of cash and liquid schemes, SAT said here today. The company has also kept Rs. 10.450000000 in another escrow account with HDFC Bank for the open offer, it said citing some of the reasons for filing the appeal. The appeal comes in the wake of SEBI's directive to JM Morgan Stanley, manager to Grasim's offer to acquire up to 20% stake in Land T at Rs. 190 per share, not to go ahead with the proposed offer. The Birla Group, in its appeal, said that SEBI should treat each case on its ownmerit and suggested that themarket regulatorcould insert certain additional clauses in the offer document without curtailing the proceedings. There have been many investor complaints about the price and the market regulator was also examining the issue of control in the light of SAT's verdict in ACC-Gujarat Ambuja case, SEBI had stated. Grasim's open offer is slated to open on December 9 and close on January 7 and will result in a maximum outgo of Rs. 9450000000 at Rs. 190 per share as against Rs. 306.6 per share paid to Reliance Industries for its over ten% stake in Land T. Meanwhile, the Investors' Grievances Forum president, Kirit Somaiya, in statement said that there was delay in making the SEBI directive public. "IGF understands that SEBI had written to the merchant bankers on November 8, however, this vital decision was made known to the public only on November 18," Mr. Somaiya said. — PTI