InvestorQ : With the markets rising so sharply, what is the status of open offers? Have they gone up or gone down this year?
diksha shah made post

With the markets rising so sharply, what is the status of open offers? Have they gone up or gone down this year?

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Rutuja Nigam answered.
7 months ago
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You are right that markets have risen sharply since March and that is normally not too conducive for open offers. Company prefer to make open offers at lower prices. Open offers by listed companies were actually down by 39% at Rs.9,000 crore in the Apr-Oct period 7-month period of the current fiscal year FY21.

If you compare it with the corresponding 7-month period in 2019, there were 40 open offers worth Rs.14,603 crore back then when the markets were not in the midst of a massive bull rally as it is today. In the current year, 26 offers worth Rs.8950 crore were towards change in management control, with the balance being towards substantial acquisition of shares.

One of the impediments to the growth of open offers has been the recent SEBI rule. As per SEBI regulations, any substantial acquisition or change in control must be followed up with the acquirer making an offer to public shareholders and giving them an opportunity to exit the company. That has been the hurdle in the BPCL sale, which led to many withdrawals.

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