SEBI exempts family trust from takeover rules for Elgi Rubber share transfer

This order grants an exemption to Varnam Securities Trust from SEBI's takeover regulations for the proposed acquisition of shares in Elgi Rubber Company Limited. The acquisition is a non-commercial transfer of shares from the promoter, Sudarsan Varadaraj, to a family trust for succession planning.

Elgi Rubber Company Limited (Target Company), Varnam Securities Trust (Acquirer Trust), Sudarsan Varadaraj (Promoter/Trustee), LRG Technologies Limited (Intermediary Entity), Harsha Varadaraj, Varshini Varadaraj, Jairam Varadaraj, Sumanth Ramamurthi, Anvar Jay Varadaraj, Maya Jay Varadaraj, Varun Jay Varadaraj, Elgi Equipments Limited, Christopher James Eden, Srinidhi Guruswamy, Bharathi Varadaraj, SR Venkatachalam, MD Selvaraj.

• SEBI granted exemption from Regulations 3(1), 4, and 5 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
• The proposed transaction involves a direct transfer of 2,13,15,350 shares (42.59%) and an indirect acquisition via LRG Technologies (7.08%) by Varnam Securities Trust.
• The acquisition is structured as a gift without consideration.
• SEBI noted that the trust is a 'mirror image' of the promoters' holdings with no change in beneficial ownership or control.
• The order confirms that public shareholding remains unchanged at 34.97%.
• The application was filed on May 19, 2026.

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