Cos’ H1 Open offers drop 66% to Rs 13,000 crore
Open offers by listed companies to buy shares from investors during the first half of this fiscal plunged 66.43 per cent to Rs 13,000 crore. Offers worth Rs 38,729 crore were made to the public shareholders during the April-September period of FY14, according to data compiled by capital market regulator Sebi. Besides, the number of open offers issued by the firms declined to 29 from 46 for the period under review. As per the Sebi regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an open offer to their respective public shareholders, so as to give them a fair opportunity to exit the company if they so wish to. The open offers are made with the objective of change in control of management, consolidation of holdings and substantial acquisition in a company. For the April-September period this fiscal, the highest number of open offers were made towards change in control of management followed by that for substantial acquisition.