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

economictimes.indiatimes.com:

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.