Open offers by cos drop 66% to Rs 13,000 cr in Apr-Sept

Open offers by listed companies to buy shares from investors during the first half of this fiscal plunged 66.43 per cent to Rs 13,000 crore.

Offers worth Rs 38,729 crore were made to the public shareholders during the April-September period of FY2013-14, according to data compiled by capital market regulator Sebi.

Besides, the number of open offers issued by the firms declined to 29 from 46 for the period under review.

As per the Sebi regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an open offer to their respective public shareholders, so as to give them a fair opportunity to exit the company if they so wish to.

The open offers are made with the objective of change in control of management, consolidation of holdings and substantial acquisition in a company.

For the April-September period this fiscal, the highest number of open offers were made towards change in control of management followed by that for substantial acquisition.

As many as 21 offers worth Rs 1,218 crore were made for change in control of management.

Seven open offers to the tune of Rs 333 crore were for substantial acquisition.

One offer worth Rs 11,449 crore was made with regard to consolidation of holdings.

In September this year, only two open offers valued at Rs 14 crore were made to the investors -- the second lowest this fiscal -- after the four offers worth Rs 4 crore in August.

Sebi data is available only till the month of September.

"The two public offers (in September) were made with the objective of change in control of management," Sebi said.

In terms of value, offers to the tune of Rs 12,549 crore were made in June -- the highest amount recorded so far this financial year.

Open offers were valued at Rs 48 crore in April, Rs 254 crore in May and Rs 131 crore in July this fiscal.