Breather to JJR Family Trust

Markets regulator Sebi on Thursday exempted JJR Family Trust from making open offer following its proposed acquisition of shares in Capri Global Capital Ltd.

The order comes after Sebi received application from the trustee of JJR Family Trust seeking exemption from the applicability of SAST (Substantial Acquisition of Shares and Takeovers) Regulations in the matter of proposed acquisition of shares in Capri Global Capital. The proposed acquisition involves direct and indirect acquisition of shares of Capri Global Capital (target company) by the Trust from promoter and members of promoter group of the company, Sebi said in an order. Pursuant to acquisition of shares and voting rights by the acquirer, the Trust along with other promoters and promoter group will directly and indirectly have control over the target company. Under the direct acquisition, the Sharma family intends to dissolve and partition the assets of Ramesh Chandra Sharma HUF which is holding 1.22 per cent shares of Capri Global Capital, such that the shareholding will be distributed to Ramesh Chandra Sharma being the Karta of the Ramesh Chandra Sharma hindu undivided family (HUF). Thus, the shareholding of Ramesh Chandra Sharma would increase from 24.97 per cent to 26.19 per cent. The Trust proposes to acquire entire 26.19 per cent shares of Capri Global Capital by way of gift directly from him. In the indirect acquisition, the Trust proposes to acquire 99.97 per cent stake each in Capri Global Holdings and Capri Global Advisory Services from Ramesh Chandra Sharma, by way of gift. Capri Global Holdings and Capri Global Advisory Services hold 38.69 per cent and 9.99 per cent stake in Capri Global Capital respectively. The proposed transactions will attract the obligation to make open offers under the takeover regulations and accordingly exemption was sought from the regulator. The exemption has been sought on the ground that the proposed acquisition is intended to streamline succession and welfare of the members of Sharma family, being members of the promoter group of the target company.