Open offers by listed firms fall 32% in FY16

Open offers made by listed companies to buy shares from public shareholders dropped about 32 per cent in the financial year 2015-16, according to the data by Securities and Exchange Board of India (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, data released by the market regulator showed. In comparison, 60 offers amounting to Rs 17,241 crore were made in 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.