Financial institutions, the largest shareholders in Modi Rubber, have rejected the revised offer price of Rs 90 from the Modi family and have yet again sought that Modis buy out their entire 44 per cent stake.
On their part, the promoters are unlikely to effect any hike in the offer size to accommodate the FI's wish. The Modis had first made an offer for 35 per cent stake at Rs 80, then revised it to Rs 81.50 a share.
The second revision to Rs 90 per share announced yesterday came following the demand from the FIs that the offer price was not as much as the promoters had earlier indicated.
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The FIs had also threatened to make a counter open offer and take the management control of Modi Rubber.
Top FI sources said that in a meeting today between the promoters and FIs, the latter conveyed that they wanted an increase in the offer size. This, however, was not acceptable to the promoters of the company.
The Modis have now decided to go by a wait and watch approach.