Sterling and Wilson promoters must provide exit option for minority shareholders, says InGovern
5 years ago

Sterling and Wilson promoters must provide exit option for minority shareholders, says InGovern

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Sterling and Wilson Solar Ltd promoters’ non-fulfillment of dues owed to the company tantamounts to a change of objects of the IPO stated in the prospectus and promoters should provide an exit route for IPO investors, said InGovern, a governance analysis firm. “Hence, as per Section 35 of the Companies Act, the promoters, directors, the Company itself as well as the merchant bankers to the IPO are liable to pay compensation to all shareholders who have suffered loss in wealth due to the fall in the share price of SWSOLAR,” said Ingovern in the report. In this case, where shareholders have suffered significant erosion in value of their holdings solely due to the non-utilisation of funds as per the objects of offer of the IPO, SEBI must force the promoters to provide an exit offer to shareholders at a price as per SEBI Regulations, pointed out Ingovern in a press note. This is a demand from minority shareholders and SEBI should force the promoters to provide and exit option for minority public shareholders.” Shares of Sterling and Wilson Solar Ltd gained 4.99% to close at ₹322.05 on Thursday on the NSE.

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