In the open offer, Bayer will acquire up to 44,88,315 shares of Monsanto India from public shareholders at a price of Rs 2,481.60 a piece.
The offer price is 4 per cent higher than the Monsanto India's closing rate of Rs 2,390 per share on Tuesday at the BSE.
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On September 14, Bayer AG announced acquisition of Monsanto for $66 billion to create the world's biggest seed and pesticide firm.
After completion of the proposed deal, Bayer group will be indirectly acquiring the 72.14 per cent voting share capital of the Monsanto India, triggering into launch of an open offer for the shareholders of the Monsanto India.
Monsanto group holds 72.14 per cent stake in the Monsanto India as on June 30, 2016, according to regulatory filing.
Monsanto India informed that DSP Merrill Lynch and Credit Suisse Securities (India) have issued public announcement for the open offer on behalf of Bayer group.
The size of the open offer is for the acquisition of up to 4,488,315 fully paid-up equity shares of face value of Rs 10 each, representing 26 per cent of the fully diluted voting equity share capital of Monsanto India by Bayer Aktiengesellschaft.
Both Bayer and Monsanto have presence in India with the US firm selling genetically modified (GM) cotton seeds in the country for more than a decade.
The deal, expected to close by the end of 2017, marked a major consolidation in global seed business. Recently, Monsanto's rival Syngenta was acquired by China's state-owned firm ChemChina.
Bayer had revised its offer multiple times before it finally clinched the deal. It first offered $122 per share, which was subsequently raised to $125 per share and $127.50. Finally, the deal was signed at $128 a share.
Monsanto, which played a key role in increasing cotton output through genetically modified technologies, has three entities in India — Monsanto India, Monsanto Holdings and JV firm Mahyco Monsanto Biotech India with a staff strength of more than 1,000.
Bayer CropScience, a listed Indian entity, posted a turnover of Rs 3,818.60 crore in last financial year. Besides crop science, Bayer also has interest in pharmaceuticals, animal health and consumer health in the country.