Wednesday 13 November 2013

Gillette offer-for-sale gets 8% response till noon

 The share sale offer made by Poddar group in Gillette India evoked little response till noon on Wednesday.

Gillette India had on Tuesday fixed the floor price at Rs 1,650 for the offer-for-sale (OFS) through which the Poddar group plans to dilute 8.77 per cent stake in the company.

Till noon, the OFS got response only for about 8 per cent.

Currently, the stock, however, surged 4.8 per cent at Rs 2,053.

The floor price was at a discount of 15.6 per cent to the stock’s closing price of Rs 1,959 on Tuesday on the BSE. At the floor price, Poddars would get about Rs 470 crore.

Gillette India’s promoters would sell 28.57 lakh shares of the total paid-up equity share capital of the company through the OFS on Wednesday, the company said in a regulatory filing to the stock exchanges.

According to the company, S.K. Poddar, Akshay Poddar, Shradha Agarwala, Jyotsna Poddar, Saroj Kumar Poddar, Adventz Investments and Holdings, Adventz Finance, Adventz Securities Enterprises, Planon Group, Globalware Trading and Holdings and Procter & Gamble India Holdings B.V., form part of the promoter and promoter group of Gillette India.

The promoters of Gillette India, jointly promoted by Procter & Gamble, hold 88.76 per cent in Gillette.

The offer-for-sale follows a prolonged battle between Gillette India’s promoters and the Securities and Exchange Board of India.

Earlier in September, market regulator SEBI had approved Gillette India’s revised proposal.

Accordingly, Gillette India agreed that its US promoter P&G would sell 0.9 per cent and the Poddar Group dilute at least 5 per cent of stake in the company.

It was also then decided that the remaining shareholding of the Poddar Group will be considered as public shareholding.

According to the revised proposal, S.K. Poddar and A. Poddar would step down from the Gillette India board on approval of the resolution passed by Gillette India shareholders in a general meeting or a postal ballot.

SEBI had earlier imposed penalties on the company’s promoters for failing to comply the minimum shareholding rules.

“If entities belonging to the Poddar group want to be classified as promoters of GIL again in future, they shall be required to make an open offer and no exemption shall be given in this regard,” SEBI had said.

The Poddar group had also been directed not to acquire any Gillette India shares for a period of one year from the date of reclassification.

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