Promoter X and his group held 20.10% of the total equity of the target company as on 19.11.2008. His group holding touched 61.65% due to allotment of further shares on 20.11.2008 in terms of Amalgamation Scheme. Regulation 11 of the Takeover Code permits creeping acquisition of additional shares up to 5% in any financial year without public announcement.
Clarification is requested as to whether in this case the promoter group is entitled to acquire another 5% of the equity in the target company without public announcement in the financial year 2008-09 itself.
CAclubindia
