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Promoters of NBI Industrial Finance, a stakeholder in one of North India’s leading cement company Shree Cement, may be examined by SEBI on allegations of defrauding minority shareholders.
According to complaints filed by investors with SEBI, it has been alleged that NBI (one of the promoter group of Shree Cement) recently sold shares in a few unlisted companies for around ₹100 crore. But the value of stake held by these unlisted companies in Shree Cement is around ₹38,000 crore.
“SEBI has received investor complaints and it will look into the matter,” a source close to the regulator said. BusinessLine has a copy of complaints filed with SEBI and the source said even more shareholders of NBI will approach the regulator.
According to the latest annual report of NBI, it sold shares in Shree Capital, The Laxmi Salt Co, The Venkatesh Co, Rajesh Vanijya, Ragini Finance, Newa Investments, Mannakrishna Investments, Digvijay Finlease, Didu Investments and Ashish Creations. All these companies together own close to 58 per cent stake in Shree Cement, which as on Thursday’s closing price of ₹1,848 on the BSE could be valued at over ₹38,000 crore.
Huge tax implicationsThe recent share-sale by NBI may also have huge tax implications, the source said.
When contacted, NBI said they were not being examined or probed by SEBI and nor were they required to make any disclosure with regard to related party transactions. Further, NBI said all the transactions had taken place at ‘fair value determined by an independent valuer,’ the details of which they may not share with BusinessLine .
NBI is listed on the NSE and valued at over ₹420 crore as on Thursday’s closing price of ₹3,464.
Promoter group of NBI is led by Benugopal Bangur, a Kolkata-based billionaire. Bangur is also the promoter of Shree Cement, which owns the famous brand Bangur Cement in India.
Needs shareholder s’ nodLegal experts said, both NBI and Shree Cement may not only have to give disclosure of such related-party transactions, but the former company was even required to take shareholder nod before offloading such ‘silver’ assets that form the core business of the company. NBI primarily derives its income from investment activity and also owns 2.44 per cent stake in Shree Cement.
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