Open offers jump nearly 3-fold to Rs 1,667 cr in Oct

Total value of open offers jumped nearly three-fold to Rs 1,667 crore in October 2015 against Rs 588 crore in the same month last year.
Also, the value of open offers made to shareholders in October was the highest in the current financial year so far.
According to Sebi's latest monthly report, shareholders received five offers worth Rs 1,667 crore in October 2015, as against six offers worth Rs 588 crore during October 2014.
Open offers are made by company promoters and other entities for either consolidation of their holdings as part of substantial acquisition or change in control of management in publicly-listed companies.

The month of October also saw the highest value of open offers made during the current fiscal.
In August, nine offers worth Rs 244 crore were made to investors. Five offers worth Rs 18 crore were witnessed in May and in July two open offers worth Rs 3 crore were received by shareholders.

The month of June witnessed 10 offers worth Rs 253 crore, while April saw two offers worth Rs 489 crore. Five offers were made in September, which was worth Rs 2 crore.
In 2015-16 so far, 38 open offers worth Rs 2,685 crore were made to investors. During this period last fiscal, 35 open offers worth Rs 13,588 crore were made.

For the entire 2014-15, a total of 60 open offers for shares worth Rs 17,241 crore were made by companies.
The Sebi rules require a mandatory open offer for minority shareholders in the event of any major change in the promoter holding of a listed company, including in the wake of any direct or indirect acquisition of 25 per cent.
Such open offers are required for acquisition of up to 26 per cent stake from public shareholders.