Companies make open offers worth Rs 8,300 cr in Jan

Highest in 6 yrs

Companies made open offers worth over Rs 8,300 crore in January to buy shares from the public investors -- highest in a month in nearly six years.

The offers were made by the promoters and other entities for either consolidation of their holdings or as part of a substantial acquisition of shares in listed firms.

However, no open offer was made during the month for change in the management control.

As per the latest data compiled by the market regulator Sebi, a total of 11 open offers for shares worth Rs 8,308 crore were made by the companies in January 2013. This is the highest cumulative amount for open offers made in a month since Rs 17,646 crore (for 10 open offers) in April 2007.

Eight offers, together worth Rs 7,209 crore, were made for consolidation of holdings in January this year. This is the largest in terms of number and value made for this category so far in the 2012-13 fiscal.

The other three open offers amounting to Rs 1,099 crore were made for substantial acquisition of shares in January.

Overall, the public shareholders received 69 offers worth Rs 11,755 crore during April-January period of current fiscal.

Of these, 28 offers worth Rs 8,015 were made for consolidation of holdings, 27 offers valuing Rs 2,904 for substantial acquisition and another 14 offers for Rs 836 crore were for change in control of management.

According to the Sebi monthly bulletin, 12 companies closed their offers in January.

As per the regulator's norms, 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.