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Listed companies made open offers for shares worth Rs 37,460 crore in the first half of the current fiscal, up to September 30, the highest for the period in the past six years.
According to a report by a leading database on capital market Prime Database, 46 companies made open offers to the tune of Rs 37,460 crore in April-September period of 2013-14 under Takeover Regulations. In comparison, 44 offers amounting to Rs 1,721 crore were made in the first-half of 2012-13.
This is the highest cumulative amount for open offers made since first six-months of 2008-09.
The mega Rs 29,220-crore offer of Unilever Plc for Hindustan Unilever Ltd (HUL) contributed 78% to the total offer amount in the six-month ended September 30, 2013.
The second largest offer, after Unilever was the one made by Relay BV. It made a Rs 5,441 crore open offer for the shares of United Spirits.
"On the acceptance side, shareholders tendered shares for only Rs 21,038 crore or 56% of the offer amount made, while the HUL offer saw a 65% acceptance," the report noted.
The Securities and Exchange Board of India (Sebi) rules require mandatory open offer for minority shareholders in the event of any major change in the promoter holding of a listed company. In case of any direct or indirect acquisition of 25% stake, open offer is required for further acquisition of 26% stake from public shareholders
These offers are made by company promoters and other entities for either consolidation of their holdings or as part of substantial acquisition/change in control of management in publicly listed companies.
Out of the 46 open offers made during April-September 2013-14, seven open offers valued at Rs 31,189 crore were made by entities for consolidation of holdings, while 39 offers worth Rs 6,271 crore were made for substantial acquisition or change in control of management.
The report said that as many as 11 offers worth Rs 36,955 crore were made by foreign entities while 35 offers totalling Rs 505 crore were made by domestic entities.
In terms of sectors, 78% of offer amount was in the personal care segment followed by 15% in the breweries/distilleries category.
