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Firm’s open offers plunged by 37% to `12K crore last fiscal

Open offers made by listed companies to buy shares from public plunged 37 per cent to more than Rs 12,000 crore in the financial year 2012-13.

As per the latest data compiled by the market regulator Sebi, a total of 79 open offers for shares worth Rs 12,159 crore were made by the companies in the last fiscal year. In comparison, 71 offers amounting to Rs 19,305 crore were made in the fiscal 2011-12. 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.

The open offers are made with the objective of change in control of management, consolidation of holdings and substantial acquisition in a company. The data showed that the highest number of offers were made towards consolidation of holdings followed by that for substantial acquisition, in 2012-13. As many as 38 offers, together worth Rs 8,419 crore, were made for consolidation of holdings in 2012-13. This is the largest in terms of quantity of offers made for this category in the last five years.

Besides, 27 offers to the tune of Rs 2,904 crore were made for substantial acquisition in the last fiscal. This is also the highest in terms of number and value of offers since fiscal 2008-09.
Another 14 offers worth Rs 836 crore were made related to change in control of management -- lowest since 2008-09. This year in March, only four open offers amounting to 135 crore were made by firms to public shareholders. All these offers in the month were made by the promoters and other entities for consolidation of their holdings.

'Four offers worth Rs 135 crore were for consolidation of holdings, while there was no offer for change in control of management and substantial acquisition,' Sebi said. These open offers were for W W Technology Holdings, Count N Denier (India), Welspun Syntex and Eins Edutech.
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