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

This order grants an exemption to the Gallantt Trust from the mandatory open offer requirements under SEBI's Takeover Regulations for a proposed internal transfer of shares in Gallantt Ispat Limited. The transaction involves promoters transferring their holdings to a private family trust, which SEBI has approved as a non-commercial reorganization.

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.

• 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.

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