Listed companies’ FY16 open offers dip by 32%
A total of 73 open offers for shares worth Rs 11,766 crore were made by the companies in the financial year 2015-16 -- making it the second-lowest level since fiscal 2008-09. In comparison, 60 offers amounting to Rs 17,241 crore were made in the financial year 2014-15.
Pursuant to substantial acquisition of shares, consolidation of holdings or change in control in a listed firm, an acquirer has to make an offer to the public shareholders referred as open offers, so as to give them a fair opportunity to exit the firm if they so wish to.
Going by the data, the highest number of offers (61) worth Rs 6,868 crore were made towards change in control of management, during the last fiscal. This was followed by six offers each for substantial acquisition and consolidation of holdings.
While offers related to consolidation of holdings amounted to Rs 2,847 crore, substantial acquisitions were worth Rs 2,050 crore. December 2015 saw the maximum number of open offers in value terms at Rs 4,749 crore followed by January (Rs 3,539 crore). In March, 2016 itself, four open offers amounting to Rs 592 crore were made by firms to public shareholders. This was over 13 times more than Rs 44 crore registered in February 2016. All the offers in March were made by the promoters and other entities for change in control of management. Sebi data is available only till March, 2016.
Meanwhile, asset base of equity mutual funds (MFs) surged 16 per cent to Rs 3.57 lakh crore in April as retail investors poured money into these schemes. The industry’s equity assets under management (AUM) rose to Rs 3.57 lakh crore last month as against Rs 3.06 lakh crore in April last year, according to latest data available with Association of Mutual Funds in India (AMFI).
In March this year, the asset base of equity MFs stood at Rs 3.45 lakh crore. Despite over 5 per cent slump in the benchmark BSE Sensex in last one year, investors pumped in over Rs 78,000 crore into equity schemes. Retail participation has shown a remarkable resilience to market volatility last fiscal, experts noted. In April, equity and equity-linked saving schemes saw an infusion of Rs 4,438 crore, highest in 5 months.
This was the highest net inflow since November, when equity mutual funds witnessed an inflow of Rs 6,379 crore. Market experts attributed the rise in inflow to investment in systematic investment plans (SIPs) and strong participation from retail investors. SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.
Total inflow in equity schemes has helped the 43 mutual funds reach Rs 14.22 lakh crore in AUM at the end of last month, from Rs 11.86 lakh crore till April 2015. MFs are investment vehicles made up of a pool of funds collected from a large number of investors for the purpose of investing in stocks, bonds, money market instruments among others.
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