Industrial gases and engineering firm Linde India has sought relief from the Securities Appellate Tribunal (SAT) from the valuation diktat stated in an order passed by the Securities and Exchange Board of India (Sebi).
The tribunal may give its final decision on the matter on Tuesday.
The matter pertains to various agreements and transactions by Linde India with its related parties Praxair India and Linde South Asia Services.
Sebi had directed the company to seek shareholder approval if the aggregate value of the related party transactions (RPTs) exceeds materiality thresholds.
The regulator had asked the National Stock Exchange (NSE) to appoint a registered valuer to carry out a valuation of the business.
In its plea, Linde India has sought a stay on the valuation exercise being carried out. The counsel for Linde argued that the valuer has sought details that are price-sensitive and may involve confidentiality-related risks if shared with a third party.
The counsel highlighted that Sebi is pushing for the valuer to complete the valuation process within a tight 40-45 day timeline. However, the multinational company (MNC) has expressed concerns that meeting this deadline will be extremely challenging. It will be a ‘monumental’ task to furnish all the details being asked on a retrospective basis, the counsel has submitted.
He added that Sebi had directed Linde India to share the valuation report and observations on the exchanges—which poses risks to the share prices in case they do not represent the true picture.
Linde India prayed for the valuation exercise to stay until October 15—when an earlier plea by the company is scheduled to be heard by the tribunal.
The investigation on Linde India by Sebi is ongoing. Sebi had issued an interim order on April 29 in which it noted that it will consider punitive measures once the investigation reaches its conclusion.
The counsel for Sebi argued that stopping the valuation exercise will be ‘prejudice to public policy’ and assured that confidentiality will be maintained on price-sensitive information.
First Published: Sep 09 2024 | 6:48 PM IST
