SEBI grants exemption for promoter-controlled trust in Gallantt Ispat takeovers

The transaction involves promoters transferring their holdings to a private family trust, which SEBI has approved as a non-commercial reorganization.

Who it concerns: Gallantt Ispat Limited (Target Company), Gallantt Trust (Proposed Acquirer), Chandra Prakash Agrawal (Trustee/Settlor), and other promoter group members including Madhu Agrawal, Prem Prakash Agrawal, Santosh Kumar Agrawal, Shyama Agrawal, and Uma Agrawal.

What SEBI found or ordered

• SEBI granted exemption from Regulations 3 and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
• The proposed acquisition involves the direct transfer of 14,48,90,556 shares (60.05% of the total equity) from promoters to the Gallantt Trust.
• The transaction is characterized as an internal reorganization within the promoters' family for succession and welfare purposes.
• SEBI noted that the public shareholding remains unchanged at 30.093%.
• The Gallantt Trust is an irrevocable, discretionary, private trust settled under the Indian Trusts Act, 1882.

Also in the document

• The order confirms that the Acquirer Trust is considered a 'mirror image' of the promoters' holdings, meaning there is no effective change in control or ownership.
• The total issued and paid-up share capital of the Target Company is INR 2,41,28,09,450.
• The application for exemption was dated January 10, 2026.