Counter-Offer For Forbes Gokak Gets Sebi Nod

The battle for the control of Forbes Gokak seems to be hotting up by the day with the Securities and Exchange Board of India (Sebi) favouring the counter-offer filed by the companies controlled by Pawankumar Sanwarmal last Friday for 20.11 per cent of the company.

The counter-offer was filed with the company and the capital market watchdog late in the evening on November 2 by Aryaman Financial Services. The counter-offer has been made by Man-made Fibres Pvt Ltd, Dalal Street Investments, Resham Resa Pvt Ltd and other group companies, at Rs 88.50 per share against the on-going open offer at Rs 80 per share. As per the offer document, Pawankumar Sanwarmal holds over 14.8 per cent in Forbes Gokak.

The company's stock closed today on the BSE at Rs 80.10 against Friday's close of Rs 74. 20.

A senior Sebi official said since the counter-offer is well within the stipulated period, there is no question of disqualifying the offer. "If the minority shareholders get a better deal and the offer is made in accordance with the norms, why should Sebi disqualify the offer?" he asked.

According to Sebi takeover guidelines, any counter-offer should be filed within 21 working days of the original offer and announced two days before the end of 21 days of the original bid. The original bid offer was filed by Shapoorji Pallonji group on October 15.

The 21-working days period end on November 5. The counter-offer by companies controlled by Pawankumar Sanwarmal was filed on November 2. According to Sebi guidelines, the deadline for the announcing the counter-offer is November 5. "Since the counter-offer has been announced within the stipulated period, there is no question of disqualifying the offer," the senior Sebi official added.

Analysts feel that the Shapoorji Pallonji group may hike the offer price now to get additional 20.11 per cent stake. Currently, the Pallonji Mistry hold 14.88 per cent and the promoters 12.29 per cent.