An acquirer, holding 25% or more but less than maximum permissible non-public shareholding of the Target Company can acquire such additional shares as would entitle him to exercise more than 5% of the voting rights in an

As per Regulation 3 (2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, an acquirer who holds 25% or more but less than maximum permissible non-public shareholding of the Target Company, can acquire such additional shares as would entitle him to exercise more than 5% of the voting rights in any financial year ending March 31 only after making a Public Announcement to acquire minimum twenty six percent shares of Target Company from the shareholders through an Open Offer. An acquirer can, who has reached at a level of 25% or more and made detailed public statement to acquire = 26% shares, received in this process. Then acquirer in any financial year cannot take > 5% share. If acquirer wants to acquire > 5% share in one FY, again public offer shall be made to receive 26% (or) more shares subject to delisting level. Example: Acquirer holding 25% (public offer of 26%) Shares acquired through public offer 22% 47% + 26% = 73% Share acquired in FY 1 5% 5% Share acquired in FY 2 5% 52% Share acquired in FY 3 5% 26% = 78% Share acquired in FY 4 5% 75% - 52% = 23% Share acquired in FY 5 5% Share acquired in FY 6 3% 72% 75%