December saw open offers worth Rs 2,712 cr

Public shareholders in listed firms received open offers worth Rs 2,712 crore in December, the second highest so far this financial year, with all the issues in the month made towards change in control of management.

According to the data compiled by the Securities and Exchange Board of India, the markets regulator approved a total of seven open offers for shares valuing at Rs 2,712 crore in December, compared with two public offers with total value of Rs 31 crore in the preceding month. The value of open offers in June, worth Rs 12,549 crore, was the highest for a month in 2014-15.

With the latest monthly figures, the value of open offers during April-December 2014 has touched Rs 16,331 crore.

However, the total value of the offers till December this year is 59 per cent lower than Rs 39,979 crore worth of open offers witnessed in the same period year-ago.

Open offers are made by company promoters and other entities for either consolidation of their holdings, as part of substantial acquisition or change in control of management in publicly listed companies.

Securities and Exchange Board of India (Sebi) rules require a mandatory open offer for minority shareholders in the event of any major change in the promoter holding of a listed company, including in the wake of any direct or indirect acquisition of 25 per cent.

Such open offers are required for acquisition of up to 26 per cent stake from public shareholders.