Open offers made by listed companies to buy shares from public picked up nearly 14 per cent to Rs 9,676 crore in 2016, led almost entirely by issues towards change in control of management. A total of 57 open offers for shares worth Rs 9,676 crore were made by the companies in the last year, latest data by Sebi showed.
In comparison, 120 offers amounting to Rs 8,501 crore were made in 2015. According to Sebi regulations, 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.
The open offers are made with the objective of change in control of management, consolidation of holdings and substantial acquisition in a company. Going by the data, during 2016 the highest number of offers (50) worth Rs 9,235 crore were made towards change in control of management.