The petition from six foreign investors sought a stay on the public offer of the lender. However, SAT dismissed its plea to inject the issue and gave a clear nod to century-old lenders to go ahead with the issue.
The group of overseas investors included Robert and Ardis James Co, East River Holdings Ltd, Swiss Re Investors (Mauritius), FI investments, Cuna Group (Mauritius) and Kamehameha Mauritius.
They had objected to the lender’s decision over the withdrawal of the offer-for-sale (OFS) component from the draft red herring prospectus (DRHP) as the lender’s existing Rs 832 crore IPO is an entirely fresh issue.
According to the company’s initial DRHP filed in September last year, the IPO included the sale of both fresh shares and OFS but the red herring prospectus (RHP) filed in August did away with the OFS part.
TMB’s board approached Sebi to withdraw the OFS part in May this year. Thus, the lender was exempted from filing a fresh DRHP with the market watchdog.
The aforementioned six entities challenged this exemption by Sebi on grounds that the shareholder resolution only empowered the board to change the size of OFS and not to withdraw it.
However, SAT dismissed these appeals and did not agree with these arguments and dismissed their plans.
