Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has granted time to Texmaco Rail & Engineering to acquire shares of Kalindee Rail Nirman (Engineers) that were entangled with legal and operational problems.
Texmaco Rail, which had completed the open offer on December 11, 2013 – the date of completion of payment of consideration – was required to complete the acquisition by June 4, 2014.
However, 2.10 lakh shares held by Arvind Gemini, 1.01 lakh shares held by Lalit Kishore Gemini and 9.22 lakh shares held by Ram Dayal Sharma (all deceased) could not be completed due to issues related to the succession. The company could not acquire another 2.86 lakh shares held by Kalindee Estates due to operational issues in relation to transfer of locked-in equity shares.
Following this, Texmaco Rail had sought an extension from SEBI for completion of the acquisition. SEBI granted one year to acquire the shares of deceased persons and three months for Kalindee Estates shares.