Mumbai, Nov 11: Securities and Exchange Board of India has asked Hakeem Auto Limited to make an open offer to shareholders of GG Automotive Gears Ltd with June 13, 2002 as a reference date to calculate offer price and also pay 10 per cent annual interest thereon. Hakeem auto should make an public announcement for open offer within 45 days of Sebi chairman's order dated November 6.

The company should also pay 10 per cent interest to GG Automotive shareholders, a BSE listed company, from March 5, 2003 till the date of actual payment for shares accepted in the offer, the Sebi chairman said in his order. This penalty was being imposed on Hakeem Auto for failing to comply with Sebi regulations with regard to the acquisition of nine lakh shares, constituting 22.31 per cent stake, of the GG Automotive Ltd.

Hakeem Auto had acquired 7.15 lakh shares of GG automotive, without making announcement required under the regulations, Sebi said.


Hakeem auto had submitted a report dated September 12, 2002 to Sebi claiming exemption under takeover regulation for acquisition of 22.31 per cent stake through preferential allotment.
Bureau Report