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Informist, Monday, Aug 19, 2024

 

By Rajesh Gajra

 

MUMBAI – EPL Ltd in its annual general meeting, scheduled for Wednesday, will seek shareholders' approval for the reappointment of Dhaval Buch, husband of Securities and Exchange Board of India's Chairperson Madhabi Puri Buch, as a non-independent, non-executive director on its board, the company said in an AGM notice filed with exchanges on Jul 30. Apart from Buch's reappointment, the company will also seek shareholders' nod for adoption of its financial statements for 2023-24 (Apr-Mar), declaration of dividend, re-appointment of two independent, non-executive directors, and ratification of remuneration payable to the cost auditor

 

The US-based short seller Hindenburg Research LLC in a research report on Aug 10 alleged that the Buchs had stakes in an offshore fund structure which was also being used by Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani. It claimed that this was in conflict with SEBI's Supreme Court-driven investigation against round-tripping of funds and violation of minimum public shareholding norm by listed Adani Group entities. In a joint statement, Madhabi and Dhval Buch said Hinderburg had attempted character assassination and attacked the credibility of SEBI. They said that Madhabi had transferred her holding in the fund to her husband and that all disclosures were made internally to the market regulator.

 

Hindenburg also alleged that when Buch became a whole-time member at SEBI in 2019, her husband was appointed as a senior advisor to Blackstone, a global equity firm and a large investor in India with predominant focus on real estate assets through investment in real estate investment trusts. The short-seller alleged that during this time, SEBI had facilitated major changes in REIT regulations and Madhabi Buch had actively promoted REITs as her favourite asset class to investors at industry conferences.

 

In 2019, Blackstone, through its subsidiary Epsilon Bidco Pte Ltd, had acquired a controlling stake in EPL through an open offer. Currently, it holds 51.5% of EPL's shares as a promoter entity, and has three nominee directors on the company board, excluding Dhaval Buch. A senior advisor to Blackstone, Buch joined the EPL board in April 2021. Given that his tenure is valid only till this year's AGM, he sought shareholders' approval for re-appointment in Wednesday's meeting.

 

As per EPL's AGM notice, Dhaval Buch also holds directorship at Bristlecone India Ltd, and Mahindra Emarket Ltd. He did not own any shares of EPL and did not draw any remuneration from the company in 2023-24 (Apr-Mar), the notice said.

 

At 1303 IST, shares of EPL were 0.15% up at 250.04 rupees on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

 

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