 "sebi")
The Securities and Exchange Board of India (Sebi) has proposed to ease the pricing formula used for determining the ‘open offer’ price in the case of public sector undertaking (PSU) disinvestments. The move will potentially benefit the acquirers and could give a fillip to the disinvestment activity.
Under the takeover norms, an acquirer has to launch the so-called open offer to buy a 26 per cent stake from the public on acquisition of a 25 per cent or more stake in a listed company. The rationale behind this is to provide an exit opportunity to shareholders in the event of a takeover or change in control.
The open offer price is determined by various parameters laid down by the market
