Firms make Rs 7,003 cr in April via open offers

Mumbai: Public shareholders received open offers worth a whopping Rs 7,003 crore by listed companies in April – the second highest level in the year so far.

A total of 10 open offers for shares worth Rs 7,003 crore were made by the companies in April to buy shares from public shareholders, as per the latest data compiled by the market regulator Sebi.[caption id=“attachment_861871” align=“alignleft” width=“380”] Making money. Reuters[/caption]

This is the second highest value of offers made in a month since January 2013 when companies had made 11 open offers for Rs 8,308 crore.

Besides, the amount is significantly higher compared to the four offers amounting to Rs 135 crore in March, this year.

According to Sebi regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an offer to the public shareholders, known as open offers, so as to give them a fair opportunity to exit the company if they so wish to.

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Open offers are made with the objective of change in control of management, consolidation of holdings or substantial acquisition in a company.

“Out of the 10 public takeover offers during April 2013, nine offers worth Rs 6,977 crore were for consolidation of holdings while there was one offer worth Rs 26 crore for change in control of management and none for substantial acquisition,” Sebi said.

As per the regulator’s latest monthly bulletin, six firms closed their offers in April, including one offer related to acqusition of 4.8 crore shares of United Spirits by Relay B V.

United Spirits shares were offered at a price of Rs 1,440 apiece, amounting to Rs 6935.57 crore.

The other companies for which offers closed were – Orient Refractories, Mapro Industries, Shree Surgovind Tradelink, Archana Software and Hind Syntex.

PTI