Shriram Properties' CMD gets Sebi's approval for indirect acquisition

04 Dec 2024 CW Team

Key shareholders in the company include Shriram Group Executives Welfare Trust (SGEWT), with a 0.14% stake, and Shriram Properties Holdings Private Limited (SPHPL), which owns 27.72%, while the public shareholding accounts for 72.06%.

SEBI’s exemption order clarified that the indirect acquisition would not result in any change in the control of Shriram Properties. Post-acquisition, the promoter and promoter group will reportedly retain a combined stake of 27.94%. Malayappan has proposed acquiring 1,338,335 equity shares of SPHPL, representing 70.86% of SPHPL’s share capital, from SGEWT at an indicative price of Rs 900 per share. Following this transaction, Malayappan’s stake in SPHPL is expected to rise from 20% to 91.19%.

Malayappan applied for an exemption from SEBI’s open offer requirements under the Substantial Acquisition of Shares and Takeovers (SAST) Regulations. SEBI’s whole-time member, Ashwani Bhatia, in the exemption order, stated that the proposed transaction would not affect or prejudice the interests of public shareholders of Shriram Properties.

The Takeover Panel recommended granting the exemption, which SEBI approved, citing that the transaction would not alter the control of Shriram Properties. In the order, Bhatia noted, “I, in exercise of the powers conferred upon me under Section 19 read with Section 11(1) and Section 11(2)(h) of the SEBI Act, 1992, and regulation 11(5) of the Takeover Regulations, 2011, hereby grant exemption to the Proposed Acquirer, Mr. Murali Malayappan, from complying with the requirements of regulations 3(1), 4 and 5(1) of the Takeover Regulations, 2011, with respect to the proposed indirect acquisition.”

This development underscores SEBI’s approval for regulatory flexibility in transactions that do not alter control, while safeguarding the interests of public shareholders.

The Securities and Exchange Board of India (SEBI) has reportedly approved the indirect acquisition of Shriram Properties by the company’s Chairman and Managing Director, Murali Malayappan. Malayappan currently holds a 0.08% stake in Shriram Properties, a small-cap company with a market capitalisation of Rs 18.74 billion. Key shareholders in the company include Shriram Group Executives Welfare Trust (SGEWT), with a 0.14% stake, and Shriram Properties Holdings Private Limited (SPHPL), which owns 27.72%, while the public shareholding accounts for 72.06%. SEBI’s exemption order clarified that the indirect acquisition would not result in any change in the control of Shriram Properties. Post-acquisition, the promoter and promoter group will reportedly retain a combined stake of 27.94%. Malayappan has proposed acquiring 1,338,335 equity shares of SPHPL, representing 70.86% of SPHPL’s share capital, from SGEWT at an indicative price of Rs 900 per share. Following this transaction, Malayappan’s stake in SPHPL is expected to rise from 20% to 91.19%. Malayappan applied for an exemption from SEBI’s open offer requirements under the Substantial Acquisition of Shares and Takeovers (SAST) Regulations. SEBI’s whole-time member, Ashwani Bhatia, in the exemption order, stated that the proposed transaction would not affect or prejudice the interests of public shareholders of Shriram Properties. The Takeover Panel recommended granting the exemption, which SEBI approved, citing that the transaction would not alter the control of Shriram Properties. In the order, Bhatia noted, “I, in exercise of the powers conferred upon me under Section 19 read with Section 11(1) and Section 11(2)(h) of the SEBI Act, 1992, and regulation 11(5) of the Takeover Regulations, 2011, hereby grant exemption to the Proposed Acquirer, Mr. Murali Malayappan, from complying with the requirements of regulations 3(1), 4 and 5(1) of the Takeover Regulations, 2011, with respect to the proposed indirect acquisition.” This development underscores SEBI’s approval for regulatory flexibility in transactions that do not alter control, while safeguarding the interests of public shareholders.

Infrastructure Transport

09 Jan 2026

India Becomes First to Produce Bio-Bitumen for Roads

India has become the first country in the world to commercially produce bio-bitumen for use in road construction, according to Road, Transport and Highways Minister Nitin Gadkari. Bitumen, a black and viscous hydrocarbon derived from crude oil, is a key binding material in road building, and the bio-based alternative is expected to significantly improve the sector’s environmental footprint.Addressing the CSIR Technology Transfer Ceremony in New Delhi, Mr Gadkari congratulated Council of Scientific and Industrial Research on achieving the milestone, noting that the initiative would help curb ..

Infrastructure Urban

09 Jan 2026

HILT Policy Seen Boosting Telangana Revenue Sharply

The Hyderabad Industrial Land Transformation (HILT) Policy is expected to generate around Rs 1.08 billion in revenue for the Telangana state exchequer, according to Deputy Chief Minister Bhatti Vikramarka Mallu. Speaking in the Telangana Legislative Assembly, he said the policy would be implemented within a six-month timeframe in a transparent manner, with uniform rules applicable to all stakeholders. Mr Vikramarka noted that without the HILT Policy, the state would have earned only about Rs 1.2 million per acre. Under the new framework, however, revenue is projected to rise sharply to Rs 70 ..

Infrastructure Urban

09 Jan 2026

India Post, MoRD Tie Up to Boost Rural Inclusion

The Department of Posts and the Ministry of Rural Development have signed a Memorandum of Understanding to accelerate rural transformation and expand financial, digital and logistics services for Self-Help Groups (SHGs) and rural households across India. The agreement was signed in the presence of Union Minister of Communications and Development of North Eastern Region Jyotiraditya M. Scindia and Union Minister of Rural Development and Agriculture and Farmers’ Welfare Shivraj Singh Chouhan. The collaboration aligns with the government’s “Dak Sewa, Jan Sewa” vision and seeks to repositi..