Indian companies made 39 open offers totalling over Rs 2,500 crore to public shareholders in first six months of the current financial year, up from 23 offers worth about Rs 2,200 crore in the year-ago period.
However, the number and total size of open offers fell sharply in the first half of current fiscal beginning April 2012, when compared to the preceding six-month period that saw as many as 48 offers worth a total amount of Rs 17,061 crore.
As per Sebi's latest monthly report, public shareholders received a total of 39 open offers worth Rs 2,569 crore between April-September 2012.
Out of these, 19 offers worth Rs 1,621 crore were made for substantial acquisition of shares. This is the highest in terms of quantity and value made for this category since 2008-2009 fiscal.
As per the Sebi norms, 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.
Open offers are made with the objective of change in control of management, consolidation of holdings and substantial acquisition in a company.
However, the value of open offers declined substantially in September 2012 to Rs 109 crore, from offers worth Rs 838 crore in August 2012.
Six open offers were received in September by the public shareholders compared to 11 such offers in August.
In September, three public offers worth Rs 102 crore were made for consolidation of holdings and three others to acquire substantial quantity of shares without acquiring management control which were valued at Rs 8 crore.
The month did not see any open offers with regard to change in control of management in a company.
Nine companies also closed their open offers during the month.
In September last year, three open offers were made for a total amount of Rs 468 crore. In the first half of 2011-12 (From April to September 2011), a total of 23 offers were made for Rs 2,244 crore.
In the entire 2011-12, a total of 71 offers were made for Rs 19,305 crore.