Shareholders of German Remedies (GRL) participating in the open offer made by Zydus Cadilla will have to settle for the lower price of Rs 650 per share. This is the stance of the Securities and Exchange Board of India (Sebi).
The capital markets regulator has ruled that it can only regulate the prices of the shares and not the prices of brands and, therefore, only the price of the shares (Rs 650) will be taken as the acquisition price and not the price which includes the valuations of five brands bought by Zydus Cadilla from Asta Medica.
This view of Sebi is understood to be in line with its ruling in a previous case involving Spic, sources said. A formal order in this case will be passed by Sebi chairman DR Mehta after he returns from Stockholm.
Asta, one of the German parents of GRL, had asked all bidders to submit two bids
