SEBI grants exemption for Neogen Chemicals' family trust acquisition

This order grants an exemption to four family trusts from the mandatory open offer requirements under SEBI's Takeover Regulations for a proposed internal transfer of shares in Neogen Chemicals Limited. SEBI examined whether this reorganization of shareholding among family members warranted an exemption from the standard acquisition rules.

Neogen Chemicals Limited (Target Company); Haridas Kanani Family Trust, Beena Kanani Family Trust, Harin Kanani Family Trust, and H T Kanani Family Trust (Acquirer Trusts); Haridas Thakarshi Kanani, Harin Haridas Kanani, and Beena Haridas Kanani (Transferors/Promoters).

• SEBI granted an exemption from the applicability of Regulations 3 and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
• The proposed acquisition involves the direct transfer of 41.90% of the shares and voting rights in Neogen Chemicals Limited from individual promoters to the four Acquirer Trusts.
• The transaction is described as a non-commercial reorganization intended for family succession and welfare, with no change in effective control or management.
• The public shareholding of the Target Company remains unchanged at 48.77%.
• The Acquirer Trusts are required to confirm annual compliance with the exemption order and get this status certified by an independent auditor.

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