Relaxed open offer norm for PSUs to apply to IDBI Bank
时间:2024-06-26 07:08:55 阅读(143)
Market regulator Sebi is likely to extend the relaxed open offer norm now applicable to public sector undertakings (PSUs) being privatised to IDBI Bank, sources said.
If the relaxation is extended to the wining bidder of the bank, jointly owned by LIC and the government, it could acquire additional shares from the public in the open offer at the winning bid price instead of the volume-weighted average market price of last 60 days preceding the offer.
The relaxation is expected to give comfort to the potential buyer that there won’t be any cost escalation for the open offer. IDBI Bank is a private sector bank by definition as the government’s direct holding in the lender is less than 51%.
According to Sebi’s takeover regulations, the acquisition of an aggregate of 25% shares in a listed entity would trigger an open offer to acquire another 26% shares from the public. Only 5.28% is held by the public in IDBI Bank and the balance 94.72% is held by LIC and the Government of India.
Also Read: IDBI Bank buyer to get tax relief on LIC stake
On October 7, the Centre invited expression of interest (EoI) and offered to sell a total of 60.72% stake in IDBI Bank, including 30.48% held by the government directly and 30.24% by state-run LIC, along with the transfer of management control.
On September 30, the Sebi amended its takeover regulations and dispensed volume weighted average market price (VWAMP) based parameter for the determination of Open Offer price in case of divestment of PSUs resulting in change in control.
The government’s divestment process is long-drawn, getting culminated only when an acquirer is identified, which may take a year or more. So, by the time the share purchase agreement between the government and the buyer is executed, the traded price gets inflated and may lead to an overvalued open offer price requirement basis the prescribed 60 trading days’ VWAMP. This might reduce the bidders’ interest in the company.
So, the discovered price in the strategic disinvestment process is ideal for the open offer price, the official said.
猜你喜欢
- Zomato, SBI, Dabur, HDFC Bank, HFCL, Zee, ICICI Bank, NMDC, Coal India, Hindustan Zinc stocks in focus
- Windfall tax raised on crude oil, levy on diesel cut; duty on ATF export unchanged in fortnightly review
- RBI to act early to prevent growth risks- Guv Shaktikanta Das
- Subex share price hits 20% upper circuit on Reliance Jio Platforms partnership; should you buy, sell, hold-
- Will Nifty make a new high above 21,500- See GIFT Nifty, FII data, F&O ban, crude, more before market opens
- Tata Motors shares hit new 52-week high, up 4
- RBI’s off-cycle rate hike may not hit LIC IPO investments; valuation attractive, risks priced in
- Suraj Estate Developers IPO subscribed 71 per cent on first day of subscription
- Sugar stocks slide following reports on export restrictions