Premier rallies on SEBI verdict
Premier Ltd has rallied 14% to Rs 149 after the Securities and Exchange Board of India (SEBI) passed an order disposing off the show-cause notice issued to Premier Automobiles Ltd (PAL) for violation of the takeover regulations in the alleged transfer of shares of its joint venture partner Automobile Peugeot of France to itself.
“Dr. K.M. Abraham, whole time member, SEBI, has passed an order dated October 12, 2010, disposing of the show cause notice dated February 05, 2010 issued to M/s. Premier Limited for the alleged violations of Regulations 11(1) and 12 of Takeover Regulations in respect of alleged acquisition of shares of M/s. PAL - Peugeot Limited, without any directions," the market regulator said on its website.
It was alleged that PAL had transferred 84 million shares representing 31.96% equity stake of Automobile Peugeot in PAL-Peugeot Ltd to itself after the French company gifted its stake to the partner and quit the JV. Both PAL and Peugeot held an equal stake of 84 million shares (31.96%) in the joint venture, while the public, banks and institutions held the remaining 94.88 million (36.08%).
The stock of Premier opened at Rs 133 and touched a high of Rs 154 on the BSE. The counter has seen hectic activity, with as many as 517,000 shares changing hands till late-noon trades as against an average 14,000 shares traded daily in th'e past two weeks.