Open offers by listed firms down by a third in FY16

By PTI
23 May, 2016

Open offers made by listed companies to buy shares from public shareholders dropped about 32 per cent to Rs 11,766 crore in the last fiscal ended March 31, shows latest data published by market regulator Sebi.

A total of 73 open offers for shares worth Rs 11,766 crore were made by the companies in the financial year 2015-16 — making it the second-lowest level since fiscal 2008-09.

In comparison, 60 offers amounting to Rs 17,241 crore were made in the financial year 2014-15.

Pursuant to substantial acquisition of shares, consolidation of holdings or change in control in a listed firm, an acquirer has to make an offer to the public shareholders referred as open offers, so as to give them a fair opportunity to exit the firm if they so wish to.

Going by the data, the highest number of offers (61) worth Rs 6,868 crore were made towards change in control of management, during the last fiscal.

This was followed by six offers each for substantial acquisition and consolidation of holdings.

While offers related to consolidation of holdings amounted to Rs 2,847 crore, substantial acquisitions were worth Rs 2,050 crore.

December 2015 saw the maximum number of open offers in value terms at Rs 4,749 crore followed by January (Rs 3,539 crore).

In March, 2016 itself, four open offers amounting to Rs 592 crore were made by firms to public shareholders. This was over 13 times more than Rs 44 crore registered in February 2016.

All the offers in March were made by the promoters and other entities for change in control of management.

Sebi data is available only till March, 2016.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Open Offers Increase By 36% In The First Half Of 2008

Open Offers Increase By 36% In The First Half Of 2008

Pallavi S 9 years ago
The end of the bull market has provided a fillip to atleast one segment of deal activity. There has been a 36% jump in the...
Fewer M&As, Delistings Take Open Offers For Listed Firms To 7-year Low

Fewer M&As, Delistings Take Open Offers For Listed Firms To 7-year Low

VCC Staff 5 years ago
A lacklustre merger & acquisition (M&A) market and fewer promoters consolidating their holding in a listed firm have resulted in 30 per cent drop in...
Open offers for listed firms sink to a decadal low as promoters go slow in hiking stake

Open offers for listed firms sink to a decadal low as promoters go slow in hiking stake

Ishaan Gera 2 years ago
With mergers & acquisitions (M&As) yet to revive big time after the slowdown years and deal structures bypass minority shareholders through asset sales rather than...
No Comments

Open offers by listed firms down by a third in FY16

Powered by WordPress.com VIP