The Dhoots have decided to hike their offer price for picking up an additional two per cent in their flagship company_ Videocon International _ by Rs 25 per share to Rs 165.
A company statement issued yesterday said the revision had become necessary as the scrip's market price has crossed Rs 140, the earlier offer price, on both the BSE and the NSE. The offer was made by group holding company Shree Dhoot Trading Agencies.
"Since the market price had crossed the original offer price, the latter was no longer relevant. The price of Rs 165 per share, according to the promoters, now reflects a better return for shareholders and makes it more relevant in the context of the prevailing conditions on the stock market," the release added.
In April, the Dhoots had announced an open offer for two per cent of VIL's shareholding at Rs 140 a share, at a total cost of Rs 20 crore. This would have raised their stake in VIL to 37 per cent.
At the revised price, the Dhoots will have to pay an additional Rs 3.10 crore, taking the total cost to Rs 23.10 crore.
Reacting to the revised offer, the scrip yesterday shot up to close at Rs 150.60 on the BSE, a 52-week high. Trading in the scrip was frozen on the BSE as the price hit the upper end of the price band. On the NSE, the scrip hit the day's high of Rs 152.90 before closing at Rs 152.35, up Rs 13.
The Dhoots and their associates now hold about 42 per cent in VIL. The Dhoots had made a public announcement in April that they would make an open offer for two per cent every year for the next five years. This would take the holdings of the Dhoots and their associates to 52 per cent after five years.
