Sebi prohibits par-medicines chemicals from collapse sales to promoter-linked entity

On Monday, SEBI excluded the API manufacturer PAR-medicines and chemicals to continue with the proposed malaise sale of its core activities to a promoter-related entity, stating excellent facie irregularities in valuation, communication of shareholders and voting process.

In an interim sequence, Sebi maintained the PAR-Medicines and Chemicals Ltd (PDCL) based in Vadodara of performing the Business Transfer Agreement (BTA) on February 14, 2025, with Phal-Jig Fine Chemicals PVT Ltd (PJFCPL) for RS 95.

The copper company is part of the PDCL promotional group, according to the order.

Sebi has commissioned the National Beurs to appoint an independent registered appraiser to re -investigate the company using recognized valuation standards and to obtain an honesty advice from a trade banker.

PDCL, the management and the signatories of the BTA are instructed to stop and refrain from entering into a transaction that can lead to removal of assets to further instructions, the regulator said.

Both the valuation report and the honesty advice, together with the recommendation of NSE, must be submitted within 15 days of the date of receipt of the opinion of fairness, it added. “… Excellent Facie of the opinion that the correctness of the valuation method adopted by PDCL must be re -examined independently to check whether the appreciation is fair and a reflection of the actual value of the company that is transferred by the proposed slack sales.” It is also a fact that the market capitalization of PDCL is annoyed by the announcement of the advanced sale, “Kamlesh Chandra Varshney said in the order.

PDCL has announced Sebi that the proposed slump sales will be completed on 20 September.

That is why Sebi said that it is necessary to issue interim directions, so that PDCL is stopped by going with every step that can lead to the alienation, sale or removal of its assets, including the implementation of the BTA of 14 February 2025, to complete further investigation in this case.

“If the proposed suction sales transaction continues, this can seriously injure public shareholders, because the transaction would become irreversible in implementation.

“That is why I think there is enough grounds to form a great facie -that the proposed slump sales transaction by PDCL can be harmful to the interests of public shareholders and justifying urgent intervention by Sebi in the form of intermediate directions,” Varshney said.

The Securities and Exchange Board of India (Sebi) had received a complaint stating that a proposed slump of the business community by PDCL does not comply with the applicable legislation and is detrimental to the interests of the public shareholders.