Open offers in FY 2015-16 fell 32% from last fiscal

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In the financial year that ended on March 31, as many as 73 listed companies made open offers worth nearly Rs 12,000 crore, seeing a fall of 32% from last fiscal, when open offers were made for Rs 17,352 crore, says a report by a Prime Database.

"This decrease can be attributed primarily to the base effect as 2014-15 had one mega offer of Rs 11,449 crore from Relay BV for United Spirits," Prime Database Managing Director Pranav Haldea said. He added that subdued activities were seen in open offers, buybacks and delisting amid poor equity markets.

The largest offer made came from Family Investment/Sunrise Associates/Goldenstar Enterprises and others for Suzlon Energy, standing at Rs 2,838 crore. However, it saw a zero per cent acceptance.

The next biggest offers were from GE Energy Europe BV for Alstom T&D India for Rs 1,927 crore and FIH Mauritius Investments for IIFL Holdings for Rs 1,621 crore.

"On the acceptance side too, shareholders tendered far lesser shares; just Rs 2,971 crore or 25 per cent of the offer amount made. (In comparison, it was Rs 13,009 crore in 2014-15 75 per cent of the amount on offer)," he added.

As per Securities and Exchange Board of India (SEBI) rules, open offers are mandatory for minority shareholders in the event of any major change in promoter holding of a listed company. However, in case of any direct or indirect acquisition of 25% stake, open offer is required for further acquisition of 26% stake from public shareholders.

These offers in question are made by company promoters and other entities either for the consolidation of their holdings or as a part of substantial acquisition/change when publicly listed companies see management changes.

Other than open offers, 15 buyback offers were also concluded last FY with an acquired amount of Rs 1,713 crore against an offered amount of Rs 1,763 crore, with the largest buyback being was by Bayer Cropscience for Rs 506 crore.

In addition, nine delisting offers worth Rs 5,479 crore were made in last fiscal. Of these, eight offers worth Rs 5,477 crore were successful.

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