Open offers worth Rs 106 crore in August, lowest since March: Sebi

Public shareholders in listed firms received open offers worth Rs 106 crore in August, the lowest so far this fiscal year, with all the issues in the month made towards consolidation of holdings.

As per the latest monthly report by market watchdog Securities and Exchange Board of India (Sebi), a total of 11 open offers for shares worth Rs 106 crore were approved in August. This is the lowest value for open offers made since March. In March itself, public shareholders received open offers worth Rs 135.

All the open offers during August were meant towards consolidation of holdings.

Meanwhile, the cumulative size of such public offers so far in fiscal year 2013-14 (FY14) has touched Rs 38,412 crore - an amount higher than the total figure for an entire fiscal year since 2008-09. The current fiscal year data by Sebi includes figures only till the month of August.

Open offers are made by company promoters and other entities for either consolidation of their holdings, as part of substantial acquisition or change in control of management in publicly listed companies.

The Sebi rules require a mandatory open offer for minority shareholders in the event of any major change in the promoter holding of a listed company, including in the wake of any direct or indirect acquisition of 25 per cent.

Such open offers are required for acquisitions of up to 26 per cent stake from public shareholders.

For the April-August period, out of total 42 open offers, maximum number of open offers (40) valued at Rs 9,145 crore have been made by entities for consolidation of holdings.

This is followed by one offer each for substantial acquisition and change in control of management worth Rs 29,241 crore and Rs 26 crore respectively.

As per Sebi, six open offers by companies closed during August, including that of Crisil, Gujarat Automotive Gears and Drillco Metal Carbides.