Prime Focus Ltd.'s shareholders, including Reliance Media Works Financial Services, have moved the Securities Appellate Tribunal over the price of open offer made by promoters of the company.
The shareholders, in their appeal filed before the SAT, are contesting low open offer price and have sought appointment of an independent valuer by Securities and Exchange Board of India.
The shareholders have challenged the offer price of Rs 44.15 offered to retail and public shareholders of Prime Focus under the open offer made by Namit Malhotra Family, the promoters of Prime Focus.
They have sought appointment of an independent valuer by SEBI and stay on the open offer till fair valuation of Prime Focus Shares is obtained.
Open offer to the shareholders got triggered as the Credit Suisse entered into an agreement with Namit Malhotra Family to sell the shares acquired upon invocation of pledge.
E-mail sent to Prime Focus remained unanswered by the time of filing of the story.
According to shareholders, fair valuation by an independent valuer appointed by SEBI will benefit thousands of small and retail shareholders of Prime Focus.
As the open offer has already opened on Feb. 23, 2020, looking at the extreme urgency in the matter, on a writ petition filed by the shareholders, the Bombay High Court by its order dated Feb. 23, 2021 has directed SAT to hear the matter immediately.
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