GMR Industries today said sugar manufacturer EID Parry has acquired over 24.32 lakh equity shares of the company for over Rs 26.92 crore through an open offer.
The equity shares acquired under the open offer, which commenced on July 15 and closed on August 3, were bought for cash at a price of Rs 110.69 a piece from the public, GMR Industries said in a filing to the Bombay Stock Exchange.
EID Parry purchased 24,32,117 equity shares, representing 12.18 per cent of the total paid-up capital of GMR Industries, under the open offer. However, it had proposed to buy 39,92,342 equity shares (representing a 20 per cent stake) through the offer, it said.
The public shareholding of the company stood reduced to over 7.34 lakh shares from 50.2 lakh equities prior to the open offer.
"Since the response in the open offer is less than 20 per cent, the acquirer will acquire 3,62,522 shares constituting 1.82 per cent as per the terms of the SPA so that the total shareholding of the acquirer becomes 65 per cent," the filing said.
Following the acquisition, the public shareholding in the GMR Industries would be 69,86,597 shares, constituting 35 per cent of its fully diluted capital, the filing added.
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On April 24, 2010, EID Parry had entered into a definite agreement with GMR Holdings Pvt Ltd to acquire a minimum 65 per cent equity in the company.
Following the open offer, the GMR Group will become a minority shareholder in the company.
EID Parry, which is a part of the Chennai-based Murugappa Group, is a dominant player in the sugar industry and the deal will consolidate its position as a leading sugar manufacturer in the cane-rich areas of North Karnataka.