The Sardas attempt to acquire management control of BSL Ltd, formerly Bhilwara Synthetics, appears to be fading out as the 30 per cent open offer to the BSL shareholders is reportedly short by nearly 8 per cent today, the penultimate day of the bid.
Sources in the merchant banking industry said the possibility of retail investors rushing to avail of the offer tomorrow, the last date of the bid, seemed to be bleak as there appeared to be very little floating stock.
However, the offer received good response from block shareholders, particularly institutions and non-resident Indians (NRIs). Nearly 7 per cent of retail shareholders also participated in the offer.
Priced at Rs 80 a share, the conditional offer was designed in a fashion so that the acquirers, Kolmak Chemicals and some other companies of the Sarda group, would not accept the offer if it fell short by a single share.
Officials of Kolmak Chemicals refused to respond to questions on the issue. A Kolmak Chemicals official said the company was not aware of the latest position regarding the offer as it was being managed by the merchant banker, SBI Capitals Market.
Industry sources said the offer would have elicited a better response had BSL not gone in for litigation to protect the interest of its existing promoters.
The Jhunjhunwala-Churiwal managed company went to the Rajasthan High Court challenging the offer.
The Jodhpur bench of the court ordered that the final hearing, which would be delivered on December 12, would be binding on the offer.
If the offer falls through, the Sardas will be left holding their 12 per cent stake in the company against the promoters
