Saroj Poddar, co-promoter of Gillette India Ltd (GIL), has told Business Line , that he would have preferred having to sell less of his holding to help the promoter group meet Sebi norms.
GIL failed to comply with the June deadline for minimum 25 per cent public holding. It has sought to avoid selling shares through reclassification. Gokaldas Exports and Wipro are two other companies that had also sought and were allowed reclassification.
Listed companies were required to cut the promoters’ holdings to 75 per cent by June. Gilette could not meet the deadline as the market regulator had turned down an earlier proposal to lower the promoter holding.
Poddar will now sell about half of its 12.9 per cent stake through a public offering. P&G will reduce its stake from 75.9 per cent to 75 per cent.
According to corporate observers, P&G, which has acquired a number of brands and entities in India, did not want to delist GIL and compensate minority shareholders at this moment. “Unlike Hindustan Unilever Ltd, P&G did not have a listed overarching entity,” said an FMCG analystIn 1984, Poddar, son-in-law of K.K. Birla, established Gillette Co in India as a joint venture.
The 68-year-old says the loss of sentimental attachment to his own creation cannot be compensated.