td power: TD Power has to come clean on case against promoters: Proxy advisory firm -

td power: TD Power has to come clean on case against promoters: Proxy advisory firm

Mumbai: Proxy advisory firm InGovern Research said Bengaluru-based engineering services company TD Power Systems must disclose all the facts regarding the case filed by a group led by Vijay Kirloskar of Kirloskar Electric Company against promoters, including Mohib Khericha and Nikhil Kumar among others in the Karnataka High Court, to shareholders before the Annual General Meeting on August 9.

Kirloskar founded TD Power in 1999.

On June 30, promoters and promoter groups, including Khericha, Kumar, Chartered Capital, Saphire Finman Services LLP, and Hitoshi Matsuo, sold around 37.8 million shares representing 24.21% of TD Power in the open market. Promoters, who held a 58.5% stake in the company before the transaction, now hold 34.30%. The shares were acquired by institutional investors like Aditya Birla Sun Life MF, BNP Paribas, HDFC MF, ICICI Prudential MF, Goldman Sachs, LIC MF, Mahindra MF, Mirae MF, Oxbow Master Fund, Quant MF, Societe Generale among others.

Last month, the High Court of Karnataka restrained the company’s chairman Mohib Khericha, and several others from transferring 25.1 million TD Power shares held by promoter entity Saphire Finman Services. The court passed the interim order on a petition by Vijay Kirloskar.

Kirloskar, along with Kirloskar Electric Welfare Trusts, had moved the court to stop Khericha and others who hold 25.1 million shares through Saphire Finman not to transfer or sell them in the market.

According to news reports, Kirloskar had transferred his ownership of the shares to Khericha for holding them on his behalf. In the petition, it was alleged Khericha had failed to comply with an agreement to return the shares to Kirloskar. In an exchange filing on July 21, the company said Khericha, his family members and entities controlled by him had acquired some shares from Kirloskar and the trust for consideration over a period of time. It further said, as per the company’s records, there is no transfer of shares from Kirloskar and the other petitioners to Khericha.InGovern Research said the company, in the director’s report, did not make any mention of the ongoing suit filed by Kirloskar against Khericha.

InGovern Research has recommended that shareholders vote against the proposed resolution seeking Khericha’s reappointment as a director. However, the other two proxy advisory firms, Institutional Investors Advisory Services (IiAS) and Shareholder Empowerment Services (SES), recommended investors to vote in favour of the resolution.

An email query sent to TD Power and Vijay Kirloskar did not elicit any response till press time.

Source link