Briefly explain methodology for arriving at the offer price under Regulation 8(2) of SEBI (SAST) Regulations, 2011. Calculate the Offer Price in the case of direct acquisition of shares from the following information (wh

As per Regulation 8(2) of SEBI (SAST) Regulations, 2011, If the target company's shares are frequently traded then the open offer price for acquisition of shares under the minimum open offer shall be highest of the following: - the highest negotiated price per share of the target company for any acquisition under the agreement attracting the obligation to make a public announcement of an open offer; the volume-weighted average price paid or payable for acquisitions, whether by the acquirer or by any person acting in concert with him, during the fifty-two weeks immediately preceding the date of the public announcement; the highest price paid or payable for any acquisition, whether by the acquirer or by any person acting in concert with him, during the twenty-six weeks immediately preceding the date of the public announcement; the volume-weighted average market price of such shares for a period of sixty trading days immediately preceding the date of the public announcement as traded on the stock exchange where the maximum volume of trading in the shares of the target company are recorded during such period, provided such shares are frequently traded. Thus, the offer price shall be highest of the followings: - Highest negotiated price is ₹15 (Highest of ₹15, ₹13, ₹14) Volume weighted average price is ₹16 (Highest of ₹14 (26 week), ₹16 (52 week)) Highest price paid for any acquisition is ₹17 (Highest of ₹17 (26 week), ₹15 (52 week)) Volume weighted average market price is ₹18 (Highest of ₹18 (30 days), ₹15 (60 days)) Highest of the above price is offer price i.e. ₹17 (option iii).