Bharati Shipyard has received 10.2 million shares in the open offer made for acquiring an additional stake of 20 per cent in Great Offshore at Rs 590 a piece. The shares are equivalent to a stake of 27.5 per cent. Bharati had made the offer against ABG Shipyard’s counter offer to buy a stake of 33.8 per cent at Rs 520 a share.
Great Offshore’s stock price fell 7.6 per cent to Rs 468.95 a share on the BSE in the last two days as the open offer arbitrage ended with competitive offers concluding on Tuesday. Sensex lost 0.1 per cent in the last two days at 16,692.
It takes two working days to get shares transferred into a demat account after the purchase on any of the exchanges. So, only the shares bought till Friday would have been available for the open offer.
Bharati Shipyard had acquired 14.89 per cent in Great Offshore in May at Rs 315 per share from the latter’s then vice-chairman and managing director, Vijay Sheth, following an invocation of shares that he had pledged. This left Sheth with less than 1 per cent in the company and he lost control.
Following this, on June 4, Bharati made an open offer to acquire an additional 20 per cent stake in the company at Rs 344 a share. On June 23, ABG Shipyard made a counter-offer to acquire 33.8 per cent in Great Offshore at Rs 375 a share. On the same day, Bharati acquired an additional 14.5 per cent in a bulk deal at Rs 403 a share and later increased its open offer price to Rs 405 a share.
ABG Shipyard then bought an additional 6 per cent in three tranches from the open market and increased its open offer price to Rs 450 a share and, finally, to Rs 520 a share. This made Bharati increase its open offer price to Rs 560 a share, after increasing its stake to 22.8 per cent from open market transactions.
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This month, before the open offer started, Bharati once again revised its open offer price to Rs 590 a share. The following day, ABG sold its shares and effectively exited the race.
Bharati will spend about Rs 440 crore for the additional 20 per cent stake, which will almost double its debt to its equity, according to analysts. Bharati Shipyard’s stock closed 0.19 per cent higher at Rs 215.2 a share on the BSE on Tuesday.
Officials at ABG Shipyard could not be reached for confirming the number of shares got in its open offer.