Gillette India surges; Sebi approves new shareholding proposal
Sep 26 2013
Kolkata-based business house Poddar Group, which owns 12.86 percent of the company, would now dispose off a 6.86 percent stake in Gillette India in order to be considered a public shareholder, Gillette said in a statement.
U.S.-based consumer goods maker Procter & Gamble Co (PG.N) will sell a 0.90 percent stake in Gillette India to pare down its overall stake to 75 percent.
Poddar Group will terminate its shareholder agreement with P&G related to Gillette and also withdraw its nominees from the Gillette board.
SEBI also imposed certain other restrictions on Poddar Group related to management appointment and special rights related to Gillette.
The regulator had earlier imposed certain penalties on the company's promoters for failing to comply the shareholding rules. Gillette had been locked in a dispute with SEBI and its appellate tribunal regarding the shareholding structure for the last several months.
As per India's new minimum public shareholding rules, promoters cannot hold more than 75 percent in any listed company in the private sector in India.