Relaxed open offer norm for PSUs to apply to IDBI Bank
时间:2024-06-26 15:00:54 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
- One nation, one poll- Law panel examining various formulae on holding three-tier elections
- PACL case- Sebi panel provides facilities for investors to update mobile number
- OMCs seen to make marketing losses in H2 on costlier crude
- Nazara Tech, Delta Corp stocks tank upto 20% after GST council levies 28% tax on online gaming
- Nifty to rise or fall under 18,750- See SGX Nifty, FII data, US shares, crude oil, more before market opens
- Over half of PMS schemes underperform Nifty in FY23
- Nifty to hit 18200 in coming weeks, strong buying in Bank Nifty at 36500; Reliance, SBI top money making bets
- Navigating the challenges of digitisation in the legal sphere- A complex conundrum in Indian scenario
- Ola advances plan for IPO as electric scooters take off in India