Open offers by listed firms fall 62% in FY14-15

Open offers by listed companies in FY 2014-15 to buy shares from public plunged 62 per cent to just over Rs 17,000 crore as against the previous fiscal.
As per the latest data compiled by the market regulator Sebi, a total of 60 open offers for shares worth Rs 17,241 crore were made by the companies in 2014-15 -- the second lowest level since 2008-09.
In comparison, 75 offers amounting to Rs 45,411 crore were made in 2013-14.
As per Sebi regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an offer to the public shareholders, known as open offers, 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.
Sebi data showed that the highest number of offers (51) worth Rs 5,442 crore were made towards change in control of management, during the last fiscal.

This was followed by eight offers worth Rs 350 crore for substantial acquisition.
Interestingly, the largest offer amounting to Rs 11,449 crore was made by Diageo to acquire an additional 26 per cent stake in United Spirits Ltd. This offer came towards consolidation of holdings.
This year in March, 10 open offers amounting to 667 crore were made by firms to public shareholders. All these offers in the month were made by promoters and other entities for change in control of management.

"In March 2015, 10 offers were made to shareholders with a total value of Rs 667 crore as against six open offers worth Rs 243 crore in February 2015," Sebi said.