2 SCHEDULE OF THE MAJOR ACTIVITIES OF THE OFFER
FINAL LETTER OF OFFER
This Letter of Offer is sent to you as a shareholder of Pankaj Piyush Trade And Investment Ltd.If you require any clarifications about the action to be taken, you may consult your stock broker or investment consultant or the Manager to the Offer or the Registrar to the Offer. In case you have recently sold your equity shares in the Pankaj Piyush Trade And Investment Ltd., please hand over this Letter of Offer and the accompanying Form of Acceptance cum Acknowledgement and Transfer Deed(s) to the Member of Stock Exchange through whom said sale was affected.
OPEN OFFER BY
Mr. Vinod Kumar Bansal residing at A-1/11, Varun Apartment, Sector-9, Rohini, Delhi-110085
Tel no.: 011-45805612, Fax no.: 011 66173880
is referred to as the “Acquirer”
to acquire 1,04,000 equity shares of Rs. 10/- each at an Offer Price of Rs. 34.00/- (Rupees Thirty Four only)
per fully paid up equity share of Rs 10/- each payable in cash representing 26.00% of the total paid up
equity share capital/ voting rights
Pursuant to Regulation 4 of Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers) Regulations, 2011
of
Pankaj Piyush Trade And Investment Ltd (“The Target Company” or “PPTL”) having registered office at
109, Trinity Building, 261 S.S.Gaikwad Marg, Dhobi Talao, Marine Lines, Mumbai, Maharashtra- 400002,
Tel No:- 022-22073080, Fax No:- 022 22073081, E-mail:- pp_tradeinvest@rediffmail.com,
Website: - www.pptinvestment.com.
ATTENTION:
1. The Offer is being made by the Acquirer pursuant to Regulation 4 of the Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011(hereinafter referred to as “SEBI (SAST) REGULATIONS, 2011” or “Regulations”) for the purpose of change in control and the management of the Target Company consequent to the proposed acquisition of entire holding of the existing promoter by the Acquirer.2. The Offer is not a conditional Offer on any minimum level of acceptance.
3. As on the date of this Final Letter of offer, to the best of the knowledge of the Acquirer, the offer is not subject to any statutory
and regulatory approvals, however, it will be subject to statutory approvals that may become applicable at a later date.
4. Upward revision, if any, of the Offer Prize/Size would be informed by way of a public announcement in the same newspapers
where the Detailed Public Statement (“DPS”) & Public Announcement (“PA”) has appeared. The Acquirer is permitted to revise the Offer Size and/or Offer Price upwards only at any time prior to the commencement of the last three working days of the Tendering Period i.e. up to April 10, 2012. The same price will be payable by the Acquirer for all the shares tendered anytime during the Tendering Period.No Competitive bid has been announced as on the date of this Final Letter of Offer.
5.
6. A copy of Public Announcement, Corrigendum to the Public Announcement, Detailed Public Statement, Letter of Offer,
Second Corrigendum to the Public Announcement/Detailed Public Statement, Form of Acceptance–cum- Acknowledgement are also available on SEBI’s web-site: www.sebi.gov.in
FOR PROCEDURE FOR ACCEPTANCE OF THIS OPEN OFFER PLEASE REFER SECTION 8
"PROCEDURE FOR ACCEPTANCE AND SETTLEMENT OF THE OFFER” (PAGE NOS. 20 to 24)
FORM OF ACCEPTANCE-CUM-ACKNOWLEDGEMENT IS ENCLOSED WITH THISFINALLETTER OF OFFER.
All future correspondence, if any, should be addressed to the Manager / Registrar to the Offer at the following addresses: Manager to the Offerthe offer Registrar to the Offer Intensive Fiscal Services Private Limited Skyline Financial Services Pvt. Ltd. th st
131, C-wing, Mittal Tower, 13 floor, D-153 A, 1 Floor, Okhla Industrial Area, Phase 1, New Delhi-110020
Nariman Point, Mumbai- 400021 Tel. Nos.:- 022 22870443/44/45 Tel. No.- 011 – 30857575 Fax - 011 - 30857562.
Fax No.:- 02222870446 Email:info@skylinerta.com
E-mail:- rishabh@intensivefiscal.com Contact Person:- Rishabh Jain/Nikesh Jain Contact Person – Mr. Sajimon Nair SEBI Registration No.: INR000003241
SEBI Registration No.: INM000011112 OFFER CLOSES ON: APRIL 27, 2012 OFFER OPENS ON: April 16, 2012
SCHEDULE OF THE MAJOR ACTIVITIES OF THE OFFER
Activity Original Revised Date Day Date Day
Date of Public Announcement January 31, 2012 Tuesday January 31, 2012 Tuesday Date of Detailed Public Statement February 7, 2012 Tuesday February 7, 2012 Tuesday Corrigendum to Public Announcement February 7, 2012 Tuesday February 7, 2012 Tuesday Second Corrigendum to the Public Announcement/ Detailed Public Statement March 30, 2012 Friday March 30, 2012 Friday Identified Date* March 12, 2012 Monday March 29, 2012 Thursday Date by which Draft Letter of Offer was filed with the SEBI February 14, 2012 Tuesday February 14, 2012 Tuesday Last date for a Competitive Bid, if any February 29, 2012 Wednesday February 29, 2012 Wednesday Date of receipt of the comments on Draft Letter of Offer from SEBI March 7, 2012 Wednesday March 27, 2012 Tuesday Date by which Letter of Offer was dispatched to the Shareholders March 19, 2012 Monday April 9, 2012 Monday Last date for Revising the Offer Price / Number of Equity Shares March 20, 2012 Tuesday April 10, 2012 Tuesday Date of announcement containing reasoned recommendation by committee of independent directors of PPTL. March 22, 2012 Thursday April 11, 2012 Wednesday Date of Advertisement announcing the schedule of activities for the open offer, status of statutory & other approvals, status of unfulfilled conditions (if any), March 26, 2012 Monday April 13, 2012 Friday Date of opening of the Tendering Period March 27, 2012 Tuesday April 16, 2012 Monday Date of closing of the Tendering Period April 11, 2012 Wednesday April 27, 2012 Friday Date of post offer advertisement April 18, 2012 Wednesday May 7, 2012 Monday Date by which the acceptance/ rejection would be intimated and the corresponding payment for the acquired shares and/or share certificate for the rejected shares will be dispatched April 25, 2012 Wednesday May 14, 2012 Monday
* “Identified Date” is only for the purpose of determining the Shareholders as on such date to whom the letter of
offer would be mailed. It is clarified that all owners (registered or unregistered) of the Shares of the Target
Company (except the Acquirer and Seller who own the shares of the PPTL) are eligible to participate in the Offer
any time before the closing of the tendering period.Note: Duly Signed Application and Transfer Deed(s) together with share certificate(s) should be dispatched by Registered
Post / Courier or hand delivered to the Registrar to the Offer at above address to arrive not later than 17:00 hours on or before April 27, 2012.
RISK FACTORS
Risk Factors relating to the Proposed Offer
1. In the event of any litigation leading to stay on the Offer or SEBI instructing that the Offer should not be proceeded with, thus the Offer process may be delayed beyond the Schedule of the Major Activities indicated in this Final Letter of Offer.
2. The Share Purchase Agreement (SPA) dated January 31, 2012 contains a clause to the effect that the SPA is subject to the provisions of the Regulations and in case of non-compliance of any provisions of the Regulations by the Acquirer or the Seller, the SPA shall not be acted upon by the parties.
3. In case the shares tendered in the Offer by the shareholders are more than the shares to be acquired under the Offer, the acquisition of shares from each shareholder will be on a proportionate basis in consultation with the Merchant Banker.
4. If the Acquirer is unable to make the payment to the shareholders who have accepted the Offer within 10 working days from the date of closure of the tendering period, then SEBI may, if satisfied that the non-receipt of requisite statutory approvals, that may become applicable prior to completion of the Offer, was not due to any willful default or neglect of the Acquirer or the failure of the Acquirer to diligently pursue the applications for such approvals, grant extension of time for the purpose, subject to the Acquirer agreeing to pay interest to the shareholders for delay beyond 10 working days, as may be specified by SEBI from time to time. The tendered shares and documents would be held by the Registrar to the Offer, till such time as the process of acceptance of tendered shares and payment of consideration is completed.
5. The transaction is subject to completion risks as would be applicable to similar transactions.
Probable risks involved in associating with the Acquirer
1. The Acquirer expressly disclaim any responsibility or obligation of any kind (except as required by applicable law) with respect to any decision by any Shareholder on whether to participate or not to participate in the Offer.
2. The Acquirer makes no assurance with respect to the continuation of the past trend in the financial performance of the Target Company. Association of the Acquirer with PPTL /taking control of PPTL by the Acquirer does not warrant any assurance with respect to the future financial performance of PPTL.
3. Post this Offer, (assuming full acceptance) the Acquirer will have significant equity ownership and control over the Target Company pursuant to Regulation 4 of Regulations.
4. The Acquirer has no prior experience in business areas of the Target Company.
5. The Acquirer also makes no assurances with respect to its investment/ divestment decisions relating to its proposed shareholding in the Target Company.
6. The Acquirer has sufficient resources to fulfill the obligations of the Open Offer.
The indicative risk factors set forth above are in relation to the Offer and not in relation to the present or future business or operations of PPTL or any other related matters, and are neither exhaustive nor intended to constitute a complete analysis of the risks involved in participation or otherwise by a Shareholder in the Offer or in associating with the Acquirer. The Shareholders of PPTL are advised to consult their stock broker or investment consultant or tax advisor, if any, for further risks with respect to their participation in the Offer.
TABLE OF CONTENTS Sr. No. Particulars Page No.
1. Definitions
4
2. Disclaimer Clause
5
3. Details of the Offer
5
4. Background of the Acquirer
8
5. Background of the Target Company – Pankaj Piyush Trade And Investment Ltd.
8
6. Offer Price and Financial Arrangements
16
7. Terms and Conditions of the Offer
19
8. Procedure for Acceptance and Method of Settlement
20
9. Documents for Inspection
25
10. Declaration by the Acquirer
26
11. Enclosures
26
1. DEFINITIONS
17. PAT Profit After Tax
31. Target Company or PPTL Pankaj Piyush Trade And Investment Ltd
30. Stock Exchange or BSE Bombay Stock Exchange Limited
29. SPA Share Purchase Agreement
28. Seller Mr. Rasiklal Shah
27. SEBI Act Securities and Exchange Board of India Act, 1992
26. SEBI (SAST) Regulations 1997 or Securities and Exchange Board of India (Substantial Old Regulations Acquisition of Shares andTakeovers) Regulations, 1997, and subsequent amendments thereof
25. SEBI (SAST) Regulations, 2011 or Regulations Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto
24. SEBI Securities and Exchange Board of India
23. Return on Net Worth (Profit After Tax/Net Worth)*100
21. RBI Reserve Bank of India 22. Registrar or Registrar to the Offer Skyline Financial Services Pvt. Ltd.
20. Public Announcement or “PA” Announcement of the Open Offer by the Acquirer, which appeared in the newspapers on January 31, 2012.
19. Persons not eligible to participate in the Offer Parties to the Share Purchase Agreement
18. Persons eligible to participate in the Offer Registered shareholders of Pankaj Piyush Trade And Investment Ltd and unregistered shareholders who own the equity shares of Pankaj Piyush Trade And Investment Ltd any time prior to the closure of tendering period other than the Parties to the SPA i.e. the Acquirer & the Seller.
The following definitions apply through this document, unless the context requires otherwise:
1. Acquirer Mr. Vinod Kumar Bansal
15. Offer or The Offer To acquire 1,04,000 equity shares of Rs. 10/- each at an Offer Price of Rs. 34.00/- (Rupees Thirty Four Only) per fully paid up equity share of Rs 10/- each payable in cash, representing 26.00% of the total paid up equity share capital/ voting rights
14. Net worth Equity Share capital plus Reserve & Surplus excluding Revaluation Reserve minus Debit Balance of P&L or Misc. Exp. not written off.
13. Negotiated Price Rs. 10.00/- (Rupees Ten only) per fully paid-up equity share of face value of Rs.10/- each.
Not Applicable
11. Manager to the Offer or Merchant Banker Intensive Fiscal Services Private Limited 12. N.A.
10. LOO or LOF Offer Document or Letter of Offer or Final Letter of Offer
9. Identified Date March 29, 2012
8. Form of Acceptance/FOA Form of Acceptance-cum-Acknowledgement
7. EPS Profit after tax / Number of equity shares issued
6. DPS Detailed Public Statement appeared in the newspapers on February 07, 2012
5. DLOO Draft Letter of Offer
4. Corrigenda Corrigendum to the Public Announcement appeared in the newspapers on February 07, 2011 and Second Corrigendum to the Public Announcement/Detailed Public Statement appeared in the newspaper on March 30, 2012
3. BSE Bombay Stock Exchange Ltd.
2. Book Value per share Net worth / Number of equity shares issued
16. Offer Price Rs. 34.00/- (Rupees Thirty Four Only) per share
2. DISCLAIMER CLAUSE “IT IS TO BE DISTINCTLY UNDERSTOOD THAT FILING OF THIS FINAL LETTER OF OFFER WITH SEBI SHOULD NOT IN ANY WAY BE DEEMED OR CONSTRUED THAT THE SAME HAS BEEN CLEARED, VETTED OR APPROVED BY SEBI. THE FINAL LETTER OF OFFER HAS BEEN SUBMITTED TO SEBI FOR A LIMITED PURPOSE OF OVERSEEING WHETHER THE DISCLOSURES CONTAINED THEREIN ARE GENERALLY ADEQUATE AND ARE IN CONFORMITY WITH THE REGULATIONS. THIS REQUIREMENT IS TO FACILITATE THE SHAREHOLDERS OF PANKAJ PIYUSH TRADE AND INVESTMENT LTD. TO TAKE AN INFORMED DECISION WITH REGARD TO THE OFFER. SEBI DOES NOT TAKE ANY RESPONSIBILITY EITHER FOR FINANCIAL SOUNDNESS OF THE ACQUIRER OR THE COMPANY WHO’S SHARES/CONTROL ARE PROPOSED TO BE ACQUIRED OR FOR THE CORRECTNESS OF THE STATEMENTS MADE OR OPINIONS EXPRESSED IN THE FINAL LETTER OF OFFER. IT SHOULD ALSO BE CLEARLY UNDERSTOOD THAT WHILE ACQUIRER IS PRIMARILY RESPONSIBLE FOR THE CORRECTNESS, ADEQUACY AND DISCLOSURE OF ALL RELEVANT INFORMATION IN THIS FINAL LETTER OF OFFER, THE MERCHANT BANKER IS EXPECTED TO EXERCISE DUE DILIGENCE TO ENSURE THAT THE ACQUIRER DULY DISCHARGES ITS RESPONSIBILITY ADEQUATELY. IN THIS BEHALF AND TOWARDS THIS PURPOSE, THE MERCHANT BANKER, INTENSIVE FISCAL SERVICES PRIVATE LIMITED HAS SUBMITTED A DUE DILIGENCE CERTIFICATE DATED FEBRUARY 10, 2012 TO SEBI IN ACCORDANCE WITH THE SEBI (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS, 2011 AND SUBSEQUENT AMENDEMENTS THEREOF. THE FILING OF THE FINAL LETTER OF OFFER DOES NOT, HOWEVER, ABSOLVE THE ACQUIRER FROM THE REQUIREMENT OF OBTAINING SUCH STATUTORY CLEARANCES AS MAY BE REQUIRED FOR THE PURPOSE OF THE OFFER.”
3. DETAILS OF THE OFFER
3.1. Background of the Offer
3.1.1. This open offer is being made by the Acquirer to the equity shareholders of Pankaj Piyush Trade And Investment Ltd, a company incorporated and duly registered under the Companies Act, 1956, on May 29, 1982 and having its registered office at 109, Trinity Building, 261 S.S. Gaikwad Marg, Dhobi Talao, Marine Lines, Mumbai, Maharashtra- 400002, Tel No 022-22073080, Fax No 022 22073081, E-mail - pp_tradeinvest@rediffmail.com, Website - www.pptinvestment.com pursuant to the Regulation 4 and in compliance with the SEBI (SAST) Regulations, 2011. The Acquirer proposes to takeover the management control of PPTL pursuant to the SPA.
3.1.2. The Acquirer hereby makes this Offer to the equity shareholders of the Target Company (other than the parties to the SPA) to acquire up to 1,04,000 equity shares (“Shares”) of the Target Company of face value of Rs.10 each, representing in aggregate 26.00% (in terms of Regulation 7(1)) of the paid up equity share capital and voting capital of the Target Company at a price of Rs. 34.00/- (Rupees Thirty Four Only) per fully paid up equity share, payable in Cash subject to the terms and conditions mentioned in the PA, DPS and in this LOO that will be circulated to the shareholders in accordance with the SEBI (SAST) Regulations, 2011, whose names appear on the register of members on the Identified Date i.e. March 29, 2012.
3.1.3. Mr. Vinod Kumar Bansal is the only Acquirer in this open offer and there are no other Persons acting in concert (PACs) with the Acquirer in respect of this Offer within the meaning of Regulation 2(1)(q) of the SEBI (SAST) Regulations, 2011.
3.1.4. The Acquirer intend to acquire shares from Seller via Share Purchase Agreement (SPA) on January 31, 2012 at a price of Rs. 10.00/- (Rupees Ten only), details of which are as follows:
Seller Acquirer Name of the Seller No. of % w.r.t. to Name of the Acquirer No. of % w.r.t. to Equity the total Equity the total paid Shares paid up capital Shares up capital
Mr. Rasiklal Shah 60,000
15.00 Mr. Vinod Kumar Bansal 60,000
15.00 Total 60,000
15.00 Total 60,000
15.00
3.1.5. The Acquirer has entered into a Share Purchase Agreement (SPA) on January 31, 2012 with the Seller of the Target Company to acquire 60,000 (hereinafter referred to as “Said Shares”) fully paid up equity shares of Rs. 10/- each, representing 15.00% of the issued, subscribed, paid up and voting capital of the Target Company at a price of Rs. 10.00/- (Rupees Ten only) per share aggregating to Rs. 6,00,000/- (Rupees Six Lakhs only).
3.1.6. By the above proposed acquisition pursuant to SPA, the Acquirer will be in control of the Target Company, which resulted in triggering of SEBI (SAST) Regulations, 2011.
3.1.10. As on date of this LOO, the Seller is the only Promoter of the Target Company as per the definition in SEBI (SAST) Regulations, 2011.
3.2.1. The Acquirer has made a Public Announcement on January 31, 2012, Corrigendum to the Public Announcement on February 07, 2012, Detailed Public Statement on February 07, 2012 and Second Corrigendum to the Public Announcement/Detailed Public Statement on March 30, 2012 in accordance with the Regulation 15 and pursuant to Regulation 4 of SEBI (SAST) Regulations, 2011, in the following newspapers:
3.1.15. The Acquirer may change the Board of Directors of the Target Company once all the formalities of the Open Offer get completed.
3.1.14. As per Regulations 26(6) and 26(7) of SEBI (SAST) Regulations, the Board of the Target Company is required to constitute a committee of Independent Directors who would provide its written reasoned recommendation on the Offer to the Shareholders of the Target Company and such recommendations shall be published at least two working days before the commencement of the Tendering Period in the same newspaper where the DPS of the Offer was published i.e. on April 11, 2012.
3.1.13. There is no other consideration/compensation, in cash or kind, whether directly or indirectly is being given to the Seller apart from the consideration as stated in Para 3.1.4 above.
3.1.12. The Acquirer, the Seller and the Target Company have not been prohibited by SEBI from dealing in securities, in terms of direction issued U/s 11B of SEBI Act, 1992 or under any other Regulation under the SEBI Act, 1992.
3.1.11. As on the date of this LOO, none of the directors of the Target Company represents the Acquirer.
3.1.9. Apart from 60,000 (Sixty Thousand Only) fully paid up equity shares which the Acquirer intends to purchase pursuant to SPA, the Acquirer does not hold any equity shares/ voting rights of PPTL and hence the provisions of Chapter V of SEBI (SAST) Regulations, 2011 & Chapter II of SEBI (SAST) Regulations, 1997 are not applicable.
3.1.7. The Offer is not as a result of global acquisition resulting in indirect acquisition of the Target Company.
f) In the event, if the Acquirer fails to comply with the applicable provisions of the Takeover Code relating to the Open Offer, the SPA shall stand terminated and shall be null and void and the Acquirer holding blank dated signed Transfer deed signed by the Seller along with Original Share Certificate shall return the same to the Seller and Blank dated cheque shall be returned to the Acquirer by the Seller.
e) The Share Purchase Agreement, by its own terms, shall be effective only upon the certification by the Manager of the Offer that the formalities related to the Offer have been duly completed in compliance with the SEBI (SAST) Regulations, 2011 as may be applicable to the transfer of the shares in favour of the Acquirer.
d) The Seller shall provide and shall cause the Target Company to provide to the Acquirer or his authorized representatives and advisers, full access to the Target Company its facilities, books, records and documents and provide all required materials, data and information necessary or as the Acquirer may require to investigate any facts or matters for conducting due diligence of any facts, matters, information relating to the business, affairs operations or prospects of the Target Company.
c) The Seller has delivered the signed blank dated Transfer deed signed by him along with the Original Share Certificate in turn the Acquirer have delivered Blank dated cheque in lieu of consideration of the said shares to Seller.
b) The negotiated price for the purpose of this agreement is Rs. 10.00 only (Rupees Ten Only) per fully paid up equity shares aggregating to Rs. 6,00,000/-(Rupees Six lakhs Only) which is arrived on the basis of negotiation.
a) The Seller intends to sell 60,000 fully paid up equity shares of Rs. 10 each and the Acquirer intends to buy such shares held by the seller.
3.1.8. The salient features of the SPA are as under:-
3.2. Details of the proposed Offer
Publication Language Editions
The Financial Express English All Editions Jansatta Hindi All Editions Navshakti Marathi Marathi Edition (Place where the Registered office & Stock
Exchange is situated)
The Public Announcement is also available on the SEBI website at www.sebi.gov.in
3.2.2. Pursuant to the signing of SPA, the Acquirer is making this Open Offer under Regulation 4 of the SEBI (SAST) Regulations, 2011, to acquire 1,04,000 equity shares of Rs.10/- each representing 26.00% of the total issued, subscribed, paid up and voting capital of the Target Company at a price of Rs. 34.00/- (Rupees Thirty Four Only) per fully paid up equity share (“Offer Price”) payable in Cash subject to terms and conditions mentioned hereinafter.
3.2.3. This Offer is being made to all the shareholders of the Target Company (other than the parties to the SPA) and is not conditional upon any minimum level of acceptance is in accordance with Regulation 7 (6) of the Regulations.
The Acquirer will acquire all the shares of the Target Company that are validly tendered as per the terms of the Offer up to a maximum of 1,04,000 equity shares.
3.2.4. The Offer is not a competitive bid.
3.2.5. The Offer is subject to the terms and conditions set out herein and in the Final Letter of Offer that will be sent to the shareholders of the Target Company.
3.2.6. Also the Acquirer has not acquired any shares of the Target Company after the date of Public Announcement till the date of this LOO.
3.2.7. This offer is not subject to any statutory and regulatory approvals, however it will be subject to statutory approvals that may become applicable at a later date (as mentioned in Point No. 7.3 of this LOO).
3.2.8. The Manager to the Open Offer i.e. Intensive Fiscal Services Private Limited does not hold any shares in the Target Company as on the date of PA, DPS & LOO in accordance with Regulation 27 (6) of Regulations. They declare and undertake that they shall not deal in the shares of the Target Company during the period commencing from the date of their appointment as the Manager to the Open Offer till the expiry of 15 days from the date of closure of Open Offer.
3.2.9. In terms of Clause 40A of the Listing Agreement with BSE read with Rule 19A(1) of the Securities Contracts (Regulations) Rules,1957, the Target Company is required to maintain at least 25% public shareholding for listing on a continuous basis. As per the Listing Agreement, the present Offer after considering the SPA and Open Offer Shares will not result in the public shareholding of the Target falling below the minimum level required.
3.3. Object of the Acquisition / Offer
3.3.1. The Offer is being made pursuant to Share Purchase Agreement between the Acquirer and the Seller as described in Para 3.1.4 above whereby the Acquirer intends to acquire 15.00% of the issued, subscribed and paid up share capital from the Seller.
3.3.2. The Open Offer is being made to all the public shareholders of PPTL for acquiring 26.00% of the total issued, subscribed, paid up and voting capital of the Target Company in accordance with Regulation 4 of the SEBI (SAST) Regulations, 2011. After the completion of the proposed Open Offer (assuming full acceptances) the Acquirer will achieve substantial acquisition of equity shares and voting rights accompanied with effective management control over the Target Company.
3.3.3. The prime object of the Offer is to change the control and management of the Target Company. Mr. Vinod Kumar Bansal is the only Acquirer for the proposed Open Offer. The Acquirer is yet to finalize on how they would implement the future plans. The Acquirer believes that the acquisition of a Majority stake & Management Control in the Target Company is in line with business strategy and is a step towards becoming a broad based and integrated player.
3.3.4. To the extent required and to optimize the value to all the shareholders, the Acquirer may subject to applicable shareholders’ consent, enter into any compromise or arrangement, reconstruction, restructuring, merger, amalgamation, rationalizing and/or streamlining of various operations, assets, liabilities, investments, businesses or otherwise of the Target Company. Notwithstanding, the Board of Directors of the Target Company will take appropriate decisions in these matters in line with the requirements of the business and opportunities from time to time.
3.3.5. As on the date of this LOO, the Acquirer does not have any intention to sell, dispose off or otherwise encumber any significant assets of PPTL except in the ordinary course of business of PPTL and its future policy for disposal of its assets, if any, will be decided by its Board of Directors, subject to the applicable provisions of the law and subject to the prior approval of the shareholders at a General Body Meeting of PPTL in accordance with regulation 25(2). However, the Acquirer may give effect such alienation but subject to passing a special resolution by the shareholders of Pankaj Piyush Trade And Investment Ltd by way of a postal ballot and the notice for such postal ballot containing reasons as to why such alienation is necessary.
4. BACKGROUND OF THE ACQUIRER
4.1. Mr. Vinod Kumar Bansal aged about 31 years, is the son of Mr. Virender Kumar Bansal resides at A-1/11, Varun Apartment, Sector-9, Rohini, Delhi-110085 Tel no.: 011-45805612, Fax no.: 011 66173880 is Acquirer in the terms of Regulation 2 (1) (a) of the SEBI (SAST) Regulations, 2011. Moreover he is the only Acquirer in the offer and there is no PAC with him for the purpose of this open offer.
4.2. The Acquirer has an experience of 4 years in the areas of Financing, Dealing in shares & securities and proposes to expand his activities.
4.3. Ishant Agarwal (Membership No. 518876), proprietor of Ishant Agarwal & Associates, Chartered Accountants, having their Office at B-2/18, Krishna Nagar, Near Raghunath Mandir, Delhi – 110051, Ph. +91-9555035652, E- mail caishant87.agarwal@gmail.com has certified vide certificate dated January 30, 2012 that the Net worth of Mr. Vinod Kumar Bansal is Rs. 41,50,000/- (Rupees Forty One Lakhs Fifty Thousand Only) as on January 25, 2011.
4.4. The Acquirer is not forming part of the present Promoter Group of the Target Company.
4.5. As on the date of this LOO,the Acquirer does not hold any position on the Board of Directors of any Listed Company. The Acquirer may change the Board of Directors of the Target Company once all the formalities of the Open Offer get completed.
4.6. As on date of this LOO, the Acquirer does not hold any shares of the Target Company except as mentioned above in Para 3.1.4 and hence the provisions of ChapterV of SEBI (SAST) Regulations, 2011 & Chapter II of SEBI (SAST) Regulations, 1997 are not applicable.
4.7. The Acquirer has not been prohibited by SEBI from dealing in securities, in terms of directions issued under Section 11B of the SEBI Act, 1992, as amended (the ‘SEBI Act’) or any other Regulations made under the SEBI Act.
5. BACKGROUND OF THE TARGET COMPANY
5.1. The company “Pankaj Piyush Trade And Investment Ltd” was incorporated on May 29, 1982 under the provisions of the Companies Act, 1956. The registered Office of the Target Company is at 109, Trinity Building, 261 S.S.
Gaikwad Marg, Dhobi Talao, Marine Lines, Mumbai, Maharashtra- 400002, Tel No 022-22073080, Fax No 022 22073081, E-mail - pp_tradeinvest@rediffmail.com, Website - www.pptinvestment.com
5.2. The Main Objects clause of PPTL as per Memorandum of Association is as under: 5.2.1. “To finance industrial enterprises, and for that purpose to make loans, or advances to, or subscribe to the share capital of, private industrial enterprises in India.”
5.2.2. To carry on the business of an investment company and in invest the capital and other moneys of the company in the purchase or upon the securities of shares, stocks, units, debentures, debenture-stocks, Bonds, mortgages, obligations & securities issued or guaranteed by any company, corporation or undertaking, whether incorporated or otherwise, and wheresoever constituted or carrying on business and to buy, sell or otherwise deal in shares, stocks, debentures, debenture-stock, bonds, notes mortgages, obligations and other securities issued or guaranteed by any government, local or other authority or body in India or abroad.
5.2.3. To acquire, hold, sell, buy or deal in any shares, stocks, debentures, debenture stock, bonds, mortgages, obligations and other securities by original subscription, tender, purchase, exchange, gift and to subscribe for the same, either conditionally or to underwrite or sub-under-write or guarantee the subscription thereof and to purchase and sell untis.
5.2.4. To give guarantees and in particular to guarantee the payment of any principal moneys, Interest or other moneys secured by or payable under the debentures, bonds, debenture-stocks, mortgages, charges, contracts, obligations, and securities, and the payment of dividends on and the repayment of the capital of stock and shares,
5.2.5. To carry on the business as merchants, packers, traders commission agents, business agents, seller agents, brokers, adatia, buyers, sellers, indentors, importers, exporters, dealers in, commodities, minerals, ores, raw materials, manufactured products, goods and ware, plant, machinery, spares, accessories, tools, wool, raw silk, yarn fibres, garments, apparels, handlooms, cattafe industries, poultry, and dairy milk products, tobacco, leather wares, timber products, rubber and rubber products, plastic and plastic products, paper and paper products, electronic, steel and steel products, furniture, hardware, building construction materials, days, chemicals, petro- chemicals, products, fertilisers, colours, paints glass and glassware ceramics, electrical items, household appliances, office equipments, stationers, automobile products, gold, silver, diamonds, precious stones and jewellers and to act as Export House.
5.3. As on the date of PA, DPS and LOO, Promoters holding in the Target Company is as follows:
S. No. Name of the Promoter No. of Shares % w.r.t. Total Paid Up Capital
1. Rasiklal Shah 60,000
15.00 Total 60,000
15.00
5.4. As on the date of this Final Letter of Offer, the authorized share capital of the Target Company is Rs. 50,00,000 (Fifty Lakhs Only) divided into 5,00,000 (Five Lakhs only) equity shares of Rs 10/- (Rupees Ten Only) each. The issued, subscribed & Paid up capital of the Company is Rs. 40,00,000 (Rupees Forty Lakhs only) divided into 4,00,000 (Four Lakhs Only) equity shares of Rs 10/- (Rupees Ten Only) each fully paid up.
5.5. The entire issued, subscribed, paid up and voting equity capital of the Target Company is listed on BSE. The scrip code on BSE is 506122 & Scrip ID is PANKPIY. The trading in equity shares of the Target Company was suspended by BSE w.e.f April 30, 2003 due to non compliance of listing agreement. Further, the Target Company received in principle approval from BSE for revocation of suspension in trading of equity shares of the Target Company vide its letter dated October 17, 2011.
5.6. As on the date of this LOO, there are no partly paid-up, no forfeited shares but 60,000 (Sixty Thousand Only) shares of Promoter Mr. Rasiklal Shah constituting 15.00% of total paid up capital are under Lock-in requirements up to April 15, 2012. There are no outstanding convertible instruments in the nature of warrants / fully convertible debentures / partly convertible debentures etc. which are convertible into equity at any later date.
5.7. As on the date of this Final Letter of Offer, the share capital structure of the Target Company is as given under:
Paid-up Equity Shares No. of Shares/Voting Rights % of Shares/Voting Rights
Fully Paid-up Equity shares 4,00,000 100% Partly Paid-up Equity shares NIL NIL Total paid-up Equity shares 4,00,000 100% Total Voting Rights in the Company 4,00,000 100%
5.8. The Current capital structure of the Company has been built up since inception is as under:
Date of No and % of Cumulative Mode of Identity of Status of Allotment/Issue Shares issued Paid-Up Allotment Allotees Compliance Capital (Rs.) with SEBI (SAST) Regulations, 1997 or 2011 No. % May 29, 1982
7 Negligible 70 Subscribers to Members N.A.
Memorandum of Association
1982-83 399,993 100.00% 4,000,000 Public Issue Directors, their N.A.
relatives, friends, associates and PublicTotal 400,000 100.00%
5.9. Pankaj Piyush Trade And Investment Ltd - Date wise Capital Build up - Promoter & Promoters Relatives and Group Company
Sr. Name of the Opening Balance Transactions Details Closing Balance Increase/ Applicable Compliance
No. promoter/ Decrease in regulations status with Total Paid up Holding of promoterMode of Cumulative holding of of SEBI SEBI (SAST) Date of Shares acquired Shares sold Total Paid up Capital of Holding of the Capital of the promoter group acquisition holding of group entity transaction promoter (SAST) regulations and the target company promoter group target company (allotment/ (Memorandum/ promoter (+/-) (in Regulations, other applicable
IPO/Market group (in terms of %) 1997 regulations purchase/ Purchase/ terms of %) transfer) Preferential allotment/Right issue/Bonus share/Interse No. of % No. of % No. of % No. of % No. of % No. of % transfer etc. shares shares shares shares shares shares Opening Balance in
1) Hitesh Bhutla 52,500 13.13% the year 1997
13.13% Sailesh Agarwal 3,550 0.89% 14.01% Balmukund Kumar 4,400 1.10% 15.11% Ajay Kumar 5,500 1.38% 16.49% Varun Agarwal 3,000 0.75% 17.24% Puneet Agarwal 2,000 0.50% 17.74% Sanwarmal Agarwal 3,000 0.75% 18.49% SubhashPatwari 2,000 0.50% 18.99%
10 RadhaBallabh Agarwal 1,000 0.25%
19.24% K KTiwari 3,000 0.75% 19.99% C S Raha 5,000 1.25% 21.24%
Total 400,000 100 84,950 21.24% 400,000 100 84,950 21.24% 21.24%
2) Hitesh Bhutla 400,000 100 84,950 21.24% April 2, 2005 50,000 12.50% Off market Sale 400,000 100 34,950 8.74% 8.74% -12.50% Regulation Not Complied with
7(1A) Regulation 7(1A)3) Sterlite Metal Rolling 400,000 100 34,950 8.74% April 2, 2005 23,050 5.76% Off market 400,000 100 58,000 14.50% 14.50% 5.76% Regulation i) Not Complied with
Mills Pvt LtdPurchase 12 & 7(1) Regulation 7(1) and ii) Open Offer triggered under 12 as acquisition of 5.76% has resulted in change in control of the Target Company but no open offer was given.
4) Hitesh Bhutla 400,000 100 58,000 14.50% October 29, 2008 2500 0.63% Off Market Sale 400,000 100 60,000 15.00% 15.00% 0.50% Balmukund Kumar
4,400 1.10%
Ajay Kumar5,500 1.38%
C S Raha 5,000 1.25% Sterlite Metal Rolling
Mills Pvt Ltd 23,050 5.76% Sailesh Agarwal 3,550 0.89% Varun Agarwal 3,000 0.75% Puneet Agarwal 2,000 0.50% Sanwarmal Agarwal 3,000 0.75% SubhashPatwari
2,000 0.50%
RadhaBallabh Agarwal 1,000 0.25% K KTiwari 3,000 0.75% 5) Rasiklal Shah60,000# 15.00% Off Market Regulation (i) Complied with Purchase
10, 12 & SEBI (SAST) 7(1) Regulations 7(1) on January 30, 2012 – Delayed
11 by 1186 days. (ii) Open Offer triggered under Regulation 10 & 12 as Acquisition of 15% shares or voting rights by the Acquirer and it resulted in change in control of the Target Company but no open offer was given.
# Rasiklal Shah has bought 58,000 shares from the existing Promoters at that time and remaining 2000 shares from the public shareholder at a rate of Rs. 10/- per share.
On purchase of 60,000 shares, Rasiklal Shah became the sole Promoter of the Target Company and the erstwhile Promoters ceased to remain as Promoters.
SEBI may initiate action against the erstwhile promoters and against Rasiklal Shah for violation of various provisions of SEBI (SAST) Regulations, 1997
- 0.39 -
1.57 Interest
0.88 Profit/ Loss before Depreciation, Interest and Tax
3.22
3.47
1.57 Depreciation
3.22
3.47
3.22
1.45
3.47
1.57 Provision for tax
1.07 0.82 -
Profit (Loss) after Tax (PAT)
2.16
2.66
1.62
2.46 Total Expenditure
1.57
Rajasthan, India 5.11. There has been no merger / de-merger, spin-off during the past three years in PPTL.
5.10. The composition of the Board of Directors of PPTL as on the date of LOO is as follows:-
Director Name Qualification Experience Present Designation Date of DIN/PAN
residential address AppointmentSeema Mangal M.A., B.E.D., 4 years in Insurance C/O Anil Mangal, P.No. E-74a, Additional 03/11/2011 1810305
M.Phil and Securities Market Ram Nagar Extn., Sodala, DirectorJaipur, 302019, Rajasthan, India
Ashish Satish Bhatt SSC 10 years in Finance 2a/2, Sea View Co-Op. Hsg. Director 05/08/2008 2241045
Soc. Ltd.,, Ram Nagar, Borivali (West), Mumbai, 400092, Maharashtra, IndiaJignesh Anantrai Mehta SSC 8 years in Marketing 5, ShreejiBhuvan, M.G.X Road, Director 05/08/2008 2241059
Borivali (East), Mumbai, 400066 Maharashtra, India
Kavita Jignesh Mehta SSC 9 years in Administration 304, MadhubanChs, Plot No. 184, Director 05/08/2008 2246431
51 Tps Rd, Opp Factory Lane, Borivali (W), Mumbai, 400092, Maharashtra, India
Mahesh SSC 8 years inAccounting A/6, Kamal Bldg., Harsha Park, Director 05/08/2008 2246434
Indravadanbhai Pandya Chandavarkar Lane, Mumbai-92 Maharashtra, India
Anil Kumar Mangal C.A. 6 years in Financial E-74a, Ram Nagar Extension, Additional 06/01/2012 5157083
Consultancy Sodala, Jaipur, 302019, Director5.12. The Brief Financials of PPTL are as under:- (Rs. in Lakhs)
5.09
Profit & Loss Statement Period ended Period ended Six Months ended
31.03.2010 31.03.2011 30.09.2011 (Audited) (Audited) (Unaudited but certified)Income from operations
4.67
4.70
2.46 Other Income
Total Income
4.67
- Profit (Loss) before Tax and Interest
- Profit before Tax
(Rs. in Lakhs)
Balance Sheet Statement Period ended Period ended Six Months ended
31.03.2010 31.03.2011 30.09.2011 (Audited) (Audited) (Unaudited but certified) Sources of FundsPaid up Share Capital
40.00
40.00
40.00 Reserves and Surplus 2,462.29 2,462.29 2462.29
Net worth (Including Investment Allowance
Reserves of Rs.5,60,000 /- and Surplus on Revaluation of Liabilities of Rs.24,56,69,488/-) 629.30 631.95 633.52 Total
2,502.29 2,502.29 2502.29 Total Source of funds Application of Funds
- Net Fixed Assets Investments 505.00 505.00 505.00 Net Current Assets 124.30 126.95 128.52
- Miscellaneous Expenditure Profit & Loss Account 1,873.00 1,870.34 1868.77
Total 2,502.29 2,502.29 2502.29
(Rs. in Lakhs)
Other Financial Data Period ended Period ended Six Months ended
31.03.2010 31.03.2011 30.09.2011 (Audited) (Audited) (Unaudited but certified)Total Income
4.67
5.09
2.46 Profit/ (Loss) After Tax
2.16
2.66
1.57 Equity Share Capital
40.00
40.00
40.00 Earnings Per Share (Rupees)
0.54
0.66
0.39 Net worth(Excluding Investment Allowance Reserves of Rs.5,60,000 /- and Surplus on Revaluation of Liabilities of Rs.24,56,69,488/-) (1833) (1830) (1829) Book Value Per Share(Excluding Investment Allowance Reserves of Rs.5,60,000 /- and Surplus
- on Revaluation of Liabilities of Rs.24,56,69,488/-) Net worth(Including Investment Allowance Reserves of Rs.5,60,000 /- and Surplus on Revaluation of Liabilities of Rs.24,56,69,488/-) 629.30 631.95 633.52 Return on Net worth (Including Investment Allowance Reserves of Rs.5,60,000 /- and Surplus on Revaluation of Liabilities of Rs.24,56,69,488/-)(%) 0.34% 0.42% 0.25%
Book Value Per Share (Including Investment Allowance Reserves of Rs.5,60,000 /- and Surplus on Revaluation of Liabilities of Rs.24,56,69,488/-)(Rupees) 157.32 157.99 158.38
Source: Annual Report FY 2010 & 2011. As certified by B. J. Vyas (Membership No 33533), Partner of S. Ramanand Aiyar & Co, Chartered Accountants, having their office at 501/502, 5th Floor, Umerji House, Next to Crescent Plaza, Opp Imperial Hotel, Telli Gully, Andheri (East), Mumbai-400 069, Telephone Nos: (91) (22) 2682 0608 / 2682 0605 Fax: (91) (22) 2682 0274, E-mail: mumbai@sraco.in, Website: www.sraco.in the financials for Six month ended September 30, 2011 vide certificate dated January 18, 2012.
5.13.11. AS-11 Accounting for the effects in foreign currencies. Therefore this accounting standard is not applicable.