Open offers see steep decline in H1 FY'16; drop to Rs 1,009 crore

New Delhi: Open offers saw a drastic plunge during the first six months of the current fiscal, dropping to just over Rs 1,000 crore from Rs 13,000 crore in the year-ago period.

According to Sebi's latest monthly report, shareholders received a total of 33 open offers worth Rs 1,009 crore during the April-September period of the current fiscal, while in the same period last year, a total of 29 offers worth Rs 13,000 crore were made to investors.

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.

September saw five offers being made to investors worth Rs 2 crore, the lowest in terms of value during the current fiscal.

In August, nine offers worth Rs 244 crore were made. Five offers worth Rs 18 crore were witnessed in May and in July two open offers were received by the shareholders which had a value of Rs 3 crore.

For the entire last fiscal, a total of 60 open offers for shares worth Rs 17,241 crore were made by companies.

Securities and Exchange Board of India ( 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 percent.

Such open offers are required for acquisition of up to 26 percent stake from public shareholders.