Calcutta, Dec. 21: Sebi has ordered the promoter of Pyramid Saimira Theatre Ltd to make an open offer, which will be at a substantial premium, for violating share purchase rules.

P.S. Saminathan, the chairman and promoter of the Chennai-based Pyramid Saimira group, will have to make the offer within two weeks for 20 per cent of Pyramid Saimira Theatre.

According to the Sebi order dated December 19, 2008, the price shall not be less than Rs 250. On Friday, Pyramid Saimira Theatre closed at Rs 75.40 on the BSE and at Rs 75.45 on the NSE. Following the order, Saminathan will have to buy 56,55,293 shares at three times the market price.

 

Saminathan had violated the Substantial Acquisition of Shares and Takeovers Regulations 1997 on several occasions between June and November this year.

During this period, he had bought shares from co-promoters N.C. Ravichandran and Nirmal Kotecha and the market.

In October, the Pyramid promoter had announced that he would buy 25 per cent for Rs 150 crore from the co-promoters at Rs 200 a share when the market price was Rs 60.

Besides, Nirmal Kotecha was allotted shares less than three years ago. Sebi rules bar inter-se transfer between promoters for three years.

The regulator also said that Saminathan acquired 4 lakh shares from the co-promoters on November 19 at a price much below the promised Rs 200 a share.

However, the open offer directive follows Saminathan’s purchase of shares from the open market through the creeping acquisition route.

The regulator said: “It is noted from the trading details at the NSE and the BSE that you acquired 4.89 per cent shares during June 2008 at a price of Rs 250 per share and again in the period from November 19 and December 5, 2008 you acquired a further 6,91,500 shares from the market.

“By making these market purchases you have crossed the creeping acquisition limit and triggered public announcement of open offer,” the Sebi order stated. Saminathan could not be contacted.