Open offer is announced at Rs.2000/share for quantity 3,74,91,556 shares (26% of shareholding).
Public holding for Sept 2021 is 8,27,27,746 shares (includes 1,22,57,688 of Kubota holding), so remaining is 7,04,70058 shares. Based on this acceptance will be atleast 53% if all shares are offered.
See, Firstly, If it was really unfair to the existing shareholders, why would the Promoters (the Nanda family) allow this? They are not getting the new preference shares, Kubota is. How would they benefit from it?
Secondly, I think even if this plays out to be unfair somehow this could lead to increase in the open offer price, as I don’t think Kubota would want this deal deal to fall apart for a 3% premium (Rs. 2052), as is implied by SES.
So, I think this is going to be either a case of I win or I win big.
Hello,
It should take atleast another 2 months. The process never completes in the timeframe mentioned in the DPS. It would have gone to SEBI for comments. They take 3-4 months for clearing the DPS. Then only company can launch the buyback/open offer. I would presume that the same would be completed by March end.
