What is the mandatory open offer and its effect on incremental voting rights in case of fresh issue?

SEBI Takeover Regulations, 2011 provides a threshold for mandatory Open Offer. The regulations provides that whenever an acquirer acquires the shares in excess of the threshold as prescribed under regulation 3 and 4 of SEBI Takeover Regulations, 2011, then the acquirer is required to make a public announcement of offer to the shareholders of the Target Company. Incremental voting rights in case of fresh issue In case of acquisition of shares by way of issue of new shares by the target company, the difference between pre-allotment and the post allotment percentage voting rights shall be regarded as the quantum of additional acquisition. [Regulation 3(2)] The Individual acquirer shareholding shall also be considered for determining the Open Offer Trigger Point apart from consolidated shareholding of Acquirer and Persons Acting in Concert. Nothing contained in this regulation shall apply to acquisition of shares or voting rights of a company by the promoters or shareholders in control, in terms of the provisions of Chapter VI-A of SEBI (ICDR) Regulations, 2009. [Regulation 3(4)] Regulation 4 of the SEBI Takeover Regulations, 2011 specifies that if any acquirer including person acting in concert acquires control over the Target company irrespective of the fact whether there has been any acquisition of shares or not, then he has to give public announcement to acquire shares from shareholders of the Target Company. [Regulation 4]