Russell Credit, the cigarette and hotels major ITC's investment subsidiary, has revised its open offer price for VST Industries from Rs 120 to Rs 125.
The move comes even as the Delhi High Court restrained Russell Credit from giving effect to its counter offer.
Sources in Russell Credit said, "The ex parte order restrains us from giving effect to our counter offer, implying that Russell Credit cannot get the shares transferred in its name, and disburse payment to the shareholders subscribing to the counter offer."
According to the Securities and Exchange Board of India (Sebi) regulations, an open offer has to be completed - meaning the shares transferred in the name of the offeror and payment disbursed - within one month of closure of the open offer.
Russell Credit sources said, "We have time till July 13, June 13 being the scheduled closure of the counter-offer, to vacate the injunction."
Russell Credit has already acquired close to eight per cent of the share capital of VST Industries by way of subscription to the counter offer. In addition, it has acquired about 50,000 shares from the open market.
The competing bid by Bright Star Investments, a Mumbai-based firm owned by the Damanis, is priced at Rs 118.
John Band, CEO of ASK Raymond James, the merchant banker handling open offer for the Damanis, said, no decision on revision of its offer price had been taken as yet.
The Damanis hold over 15.5 per cent of VST Industries, while UK-based BAT plc holds 32.16 per cent. The public 29.55 per cent as of March 31, but this has substantially diminished on account of active buying from the market by both Russell Credit and Bright Star Investments.
