Under the provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, examine the following: Company A Ltd. has a paid-up share capital of ₹10,000 (1,000 shar

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2018
Under the provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, examine the following: Company A Ltd. has a paid-up share capital of ₹10,000 (1,000 shares of ₹10 each) and shareholder A is holding 50 shares totalling to ₹500. In case an open offer is made for 26% of the share capital and the shares tendered are 300 which are in excess of the 26% shareholding, how the shares will be accepted by the acquirer on a proportionate basis ?

Answer & Explanation:

No. of shares of A accepted = Total no. of shares offered in the open offer X Number of shares tendered by A divided by Total shares tendered in the Open offer by all investors = (260 X 50)/300 = 43.33 shares = 43 shares Shares which are invalid or are rejected due to the valid acceptances being more than the offer size are subsequently returned to the respective shareholders within 10 working days of the closure of the open offer.

Topics: SEBI (SAST) Regulations, 2011

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