XYZ Ltd., as on date, has two sets of shareholders, namely, promoters (set 'A') and others (set 'C'). It proposes to make a preferential allotment to a new set of investors (set 'B'). The shareholding pattern before and

XYZ Ltd., as on date, has two sets of shareholders, namely, promoters (set 'A') and others (set 'C'). It proposes to make a preferential allotment to a new set of investors (set 'B'). The shareholding pattern before and after the preferential allotment would be as under: Investors sets % of Shareholding Pre-preferential Allotment Post-preferential Allotment A 50 25 B 0 50 C 50 25 In the light of the relevant provisions, discuss the following : Whether 'B' is obliged to make an open offer, under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 on acquisition of 50% of shares through preferential allotment and, if so, what is the minimum size of open offer;