Listed companies made open
offers worth Rs 45,412 crore in 2013-14, highest in the past 6 years, with
Hindustan Unilever Ltd accounting for the lion's share.
According to a report by Prime Database, 75 firms made open offers amounting to Rs 45,412 crore last fiscal under the Takeover Regulations.
In comparison, 86 companies had made open offers worth Rs 11,332 crore in 2012-13.
The is the highest cumulative amount for open offers made since first six-months of 2008-09, when companies had made such offers to the tune of Rs 13,844 crore.
The mega Rs 29,220-crore offer of Unilever Plc for HUL contributed 64 per cent to the total offer amount in the past financial year.
The second largest offer was made by Glaxosmithkline for Glaxosmithkline Pharmaceuticals for Rs 6,398 crore followed by Relay BV for United Spirits for Rs 5,441 crore.
"On the acceptance side, shareholders tendered shares for only Rs 28,359 crore or 62 per cent of the offer amount made (same period last year, it was Rs 6,770 crore). HUL offer saw a 66 per cent acceptance," the report noted.
The Securities and Exchange Board of India (Sebi) rules require mandatory open offer for minority shareholders in the event of any major change in the promoter holding of a listed company. In case of any direct or indirect acquisition of 25 per cent stake, open offer is required for further acquisition of 26 per cent stake from public shareholders
These offers are made by company promoters and other entities for either consolidation of their holdings or as part of substantial acquisition/change in control of management in publicly listed companies.
Out of the 75 open offers, 10 were valued at Rs 37,622 crore were made by entities for consolidation of holdings while 65 offers worth Rs 7,790 crore were made for substantial acquisition/change in control of management.
In all, 16 offers worth Rs 44,528 crore were made by foreign entities, while 59 offers valued Rs 884 crore were by domestic entities.
"This was due to parent arms of Multi National Companies (MNCs) using the lower valuations prevalent in the first half of the financial year as well a weak rupee to consolidate their holdings in a growth market like India," the report added.
According to a report by Prime Database, 75 firms made open offers amounting to Rs 45,412 crore last fiscal under the Takeover Regulations.
In comparison, 86 companies had made open offers worth Rs 11,332 crore in 2012-13.
The is the highest cumulative amount for open offers made since first six-months of 2008-09, when companies had made such offers to the tune of Rs 13,844 crore.
The mega Rs 29,220-crore offer of Unilever Plc for HUL contributed 64 per cent to the total offer amount in the past financial year.
The second largest offer was made by Glaxosmithkline for Glaxosmithkline Pharmaceuticals for Rs 6,398 crore followed by Relay BV for United Spirits for Rs 5,441 crore.
"On the acceptance side, shareholders tendered shares for only Rs 28,359 crore or 62 per cent of the offer amount made (same period last year, it was Rs 6,770 crore). HUL offer saw a 66 per cent acceptance," the report noted.
The Securities and Exchange Board of India (Sebi) rules require mandatory open offer for minority shareholders in the event of any major change in the promoter holding of a listed company. In case of any direct or indirect acquisition of 25 per cent stake, open offer is required for further acquisition of 26 per cent stake from public shareholders
These offers are made by company promoters and other entities for either consolidation of their holdings or as part of substantial acquisition/change in control of management in publicly listed companies.
Out of the 75 open offers, 10 were valued at Rs 37,622 crore were made by entities for consolidation of holdings while 65 offers worth Rs 7,790 crore were made for substantial acquisition/change in control of management.
In all, 16 offers worth Rs 44,528 crore were made by foreign entities, while 59 offers valued Rs 884 crore were by domestic entities.
"This was due to parent arms of Multi National Companies (MNCs) using the lower valuations prevalent in the first half of the financial year as well a weak rupee to consolidate their holdings in a growth market like India," the report added.
India Inc invested USD 5.58 bln in overseas markets
Overseas direct investment
by Indian companies stood at USD 5.58 billion in April 2014, much lower than in
the year-ago period. The FDI by companies was USD 15.24 billion in April, 2013,
the data of the Reserve Bank of India showed today. The overseas FDI during the
month under consideration consisted of USD 1.15 billion on equity, USD 268.16
million on loan and USD 4.16 billion were through issuance of guarantees.
Telecom major Bharti Airtel, Elder Pharmaceuticals, Haldia Coke and Serum
Institute were among the major companies that made investment in foreign
markets in the month. Bharti Airtel issued guarantee of USD 2.11 billion and
USD 55 million in its joint venture and a wholly-owned unit in the Netherlands
and Singapore respectively. Elder Pharmaceuticals had commitment of USD 1.3
billion in the form of loans in its wholly owned subsidiary in the United Arab Emirates.
Among others, Haldia Coke and Chemicals had overseas investment of USD 2.14
billion by way of raising loans in its wholly owned unit in the US. While Serum
Institute of India raised guarantee of USD 71.96 million in the company's
wholly owned subsidiary in the Netherlands. Alok Industries had total
commitment of USD 247.61 million in three different tranches in a mix of loans
and guarantee.
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