Description

SEBI grants exemption from takeover regulations for Ms. Janky Rupen Patel's indirect acquisition of shares in Patel Engineering Limited following promoter's death.

Summary

SEBI has issued an exemption order under Regulation 11 of the SEBI (SAST) Regulations, 2011 for Ms. Janky Rupen Patel’s proposed indirect acquisition of shares in Patel Engineering Limited. The exemption relates to the transmission of shares following the death of promoter Mr. Rupen Pravin Patel on July 5, 2024. The order exempts the applicant from Regulations 3 and 5 of the Takeover Regulations for the inheritance-based share transmission.

Key Points

  • Ms. Janky Rupen Patel applied for exemption from takeover regulations for indirect share acquisition in Patel Engineering Limited
  • The acquisition is through transmission following the death of promoter Mr. Rupen Pravin Patel on July 5, 2024
  • Patel Engineering Limited is listed on BSE and NSE with paid-up capital of ₹84.44 crores
  • Promoter group collectively holds 36.11% shareholding in the company
  • 1,49,900 shares have already been transmitted to Ms. Janky Patel on September 13, 2024
  • Balance shareholding of 3,06,36,033 shares (pledged) will be transmitted after completing formalities with pledgees

Regulatory Changes

No new regulatory changes introduced. This is a company-specific exemption order under existing SEBI (SAST) Regulations, 2011.

Compliance Requirements

  • Ms. Janky Rupen Patel must complete transmission formalities for the pledged shares with relevant pledgees
  • Standard disclosure and compliance requirements under takeover regulations remain applicable for other transactions
  • No open offer requirement under the granted exemption

Important Dates

  • July 5, 2024: Death of Mr. Rupen Pravin Patel (original promoter)
  • October 23, 2024: Application filed for exemption
  • September 13, 2024: Initial transmission of 1,49,900 shares completed
  • November 14, 2024 & March 20, 2025: Supplementary replies submitted

Impact Assessment

Limited impact as this is a company-specific exemption for inheritance-based share transmission. The order facilitates smooth transition of promoter shareholding following death without triggering mandatory open offer requirements. No material change to overall market operations or broader regulatory framework. Shareholders of Patel Engineering Limited should note the change in promoter structure through legal succession.

Impact Justification

Company-specific exemption order affecting promoter shareholding structure through inheritance transmission