Linde India Seeks Relief from Securities Appellate Tribunal Regarding Valuation Diktat
Linde India, an industrial gases and engineering firm, has approached the Securities Appellate Tribunal (SAT) seeking relief from a valuation order issued by the Securities and Exchange Board of India (Sebi). The tribunal is expected to deliver its final decision on the matter on Tuesday.
The dispute stems from various agreements and transactions between Linde India and its related parties, including Praxair India and Linde South Asia Services. Sebi directed the company to obtain shareholder approval if the aggregate value of these related-party transactions exceeded materiality thresholds. Additionally, the regulator instructed the National Stock Exchange to appoint a registered valuer to assess the business's valuation.
In its plea, Linde India has requested a stay on the ongoing valuation exercise. The company's counsel argued that the valuer had requested price-sensitive details that could pose confidentiality risks if shared with a third party. They also highlighted Sebi's pressure on the valuer to complete the process within a strict 40-45-day timeframe, which Linde India believes is unrealistic and challenging. Providing all the requested details retrospectively, the counsel argued, would be a "monumental" task.
Furthermore, Linde India expressed concerns about sharing the valuation report and related observations with the exchanges, as directed by Sebi. They believe this could negatively impact share prices if the report does not accurately reflect the true picture.
Linde India has requested a stay on the valuation exercise until October 15, when an earlier plea by the company is scheduled to be heard by the tribunal.
The Sebi investigation into Linde India is ongoing. In an interim order issued on April 29, Sebi noted that it will consider punitive measures once the investigation concludes.
The counsel for Sebi argued that halting the valuation exercise would be "prejudicial to public policy" and assured that confidentiality would be maintained regarding price-sensitive information.