The Securities and Exchange Board of India (SEBI) has approved the indirect acquisition of the company by its Chairman and Managing Director, Murali Malayappan. Malayappan, who currently owns a 0.08% stake in the company, will increase his control over the company through this acquisition, though the deal will not alter the overall control structure of Shriram Properties.
Shriram Properties, with a market capitalization of ₹1,874 crore, has various shareholders, including the Shriram Group Executives Welfare Trust (SGEWT), which holds 0.14%, and Shriram Properties Holdings Private Limited (SPHPL), which owns a substantial 27.72% stake. The remaining 72.06% is publicly held. Malayappan’s application involves purchasing 13,38,335 equity shares of SPHPL from SGEWT, representing 70.86% of SPHPL’s share capital, at a price of ₹900 per share. Once the transaction is completed, Malayappan will increase his ownership in SPHPL from 20% to 91.19%, further consolidating his stake. Despite this increase, SEBI’s order confirmed that there will be no change in the control of Shriram Properties, and the promoter group will continue to hold 27.94% of the company. The regulator also clarified that the interests of public shareholders would not be adversely impacted by the acquisition.
The exemption from the open offer requirements under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations (SAST Regulations) was granted, ensuring that the acquisition proceeds without triggering additional regulatory obligations. The Takeover Panel had earlier recommended the approval of this exemption, which was subsequently granted by SEBI. As per the ruling, the acquisition will not affect or prejudice the interests of Shriram Properties’ public shareholders in any way. This development marks a crucial step in the ongoing strategic changes within Shriram Properties, and the company’s market observers will be closely watching for any further updates on the deal’s completion.
