Sterlite defers buyback offer

NEW DELHI, AUG. 14. In the face of the two-year ban imposed by the Securities and Exchange Board of India on it from approaching the capital market, Sterlite Industries today put off its proposed buyback plan scheduled to open today.

Following a SEBI communication yesterday raising queries on the buyback plan, Sterlite Industries informed the Bombay Stock Exchange about the deferment.

The offer to buy back 25 per cent shares at a maximum price of Rs. 200 per share aggregating Rs. 280 crores was to open today, an SIL spokesperson said.

He, however, did not disclose the details of queries raised by SEBI about the open offer.

The SEBI had named Sterlite Industries along with BPL and Videocon in share price manipulation and imposed a ban on their approaching the stock markets for a period between two and four years.

Sources said that the aluminium major, which recently acquired 51 per cent government equity in Balco, is in the process of settling the issue with SEBI on the ground that buyback per se would not involve mopping up funds from the markets.

The group is believed to have contended that by buying back of shares at Rs. 200 each was aimed at benefiting investors and accordingly should not be construed as violation of the SEBI order.

The deferment of buyback follows close on the heels of Department of Disinvestment (DoD) issuing notices to Sterlite Industries to show cause why its bids for acquiring stakes in various public sector enterprises should not be disqualified in the wake of SEBI's order against them.

Sterlite has bid for a stake in Hindustanm Zinc, Hindustan Copper and Hindustan Cables. The proposed buyback offer was to be made at Rs. 200 per share for 25 per cent equity, aggregating to Rs. 280 crores.

- PTI

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