As of April 29, 2025, the status of the proposed transaction , Orient Cement Ltd., Ambuja Cements Ltd., and SBI Capital Markets Limited remains unchanged. A clarification was formally sought from SBI Capital Markets on April 22, 2025, and the matter is currently pending. The response from the Merchant Banker (MB) is still awaited, and no further updates have been provided on the SEBI platform as of today.
Special Situation Alert: Orient Cement
Orient Cement is currently trading at a compelling 10% discount to the value of its upcoming Open Offer—a rare arbitrage opportunity in the making.
With final SEBI observations now received, the Open Offer is expected to launch within the next 10 working days. This event marks a critical trigger point for price convergence.
Why this matters:
The offer price sets a clear benchmark for valuation.
As the timeline shortens, market inefficiencies are likely to correct.
Such situations often present low-risk, time-bound upside—ideal for event-based investors.
Disclosure: Not investment advice. Please do your own due diligence.
Had a call with company secretary…all sebi and cci approvals have been received
as per him Open offer tendering date starts from 27th May- 9 June 2025.
Letter of offer to be sent to shareholders by tomorrow.
At CMP 355, it is trading at 11.2% discount to its open offer price of 395.
Fingers crossed!
Disc- Invested as a special situation.
The confirmation of SEBI and CCI approvals, along with the tendering window (27th May to 9th June), brings much-needed clarity. Looking forward to receiving the Letter of Offer soon.
At ₹355 CMP, the 11% arbitrage opportunity looks attractive for short-term special situation investors assuming no last-minute surprises.
Expecting open offer letter today EOD consedring 9 th as the first date and 12th is holiday and being 7th day as per SEBI guidelines , So expecting the open offer letter on 27 and intimation will be today.
Open Offer Key Dates (Confirmed from Letter of Offer)
- Offer Price: ₹395.40 per share
- Tendering Period:
Opens: May 27, 2025
Closes: June 9, 2025 - Payment Date (for accepted shares): June 23, 2025
I have never invested in open offer scenarios. Please help me with a few questions:
- How many shares will be accepted in the open offer?
- What happens to leftover shares? We have to sell them in the open market?
- What will be the effect if the price keeps going down?
It is strange that even after releasing letter of offer and fixing dates for tendering shares, there is still more than 10%+ arbitrage opportunity in this stock. Price should have converged by now.
Why is it so? Are we missing something here?
there is no simple arbitrage opportunity. total public shares are 62%. open offer is 26% means an acceptance ratio of 42%. it means you will still hold 58% of ur shares postr the open offer. market is assuming share price will fall below the current price post the open offer hence the difference.
yes but if the offer is fully subscribe and based on current vol and past Adani deals like ITD Cememt , There is a high chance the open offer will be undersubscribed improve actual acceptance, Tendering looks safe . I may be wrong.
Disc : Invested
As per tender docs they have already acquired 46% of shares, hence remaining will be 54%, of that 26%. Hence acceptance ratio will be around 50% if fully subscribed.. Then too holding value (if you bought at current price) will be 20% less than offer value..
No 26 percent is different from what was allowed to the promoters. Per SEBI rules it will be treated separately and Max 72 percent Adani can hold.
Per the recent acquisition I see it will be under subscribe.
I may go wrong but Invested Baised.
Check what happened to Sanghi Industries price post open offer which was around 121 per share. Acceptance ratio was lower and price tumbled significantly.
BACKGROUND TO THE OFFER
3.1.1 This Offer, being a mandatory open offer, is being made by the Acquirer in terms of Regulations 3(1) and 4 of the SEBI (SAST) Regulations, pursuant to the execution of the SPAs to acquire 46.80% (Forty Six point Eight Zero percent) of the Existing Share Capital (which is in excess of 25.00% (Twenty Five percent) of the Existing Share Capital) accompanied with control over the Target Company. The sellers were:-
And 26% from remaining 53.2% ( 22% held by FII and DII)of share will be acquired..
Acceptance ratio was 100%..See para 7.1 and 7.2 (actuals) …20481161 shares were tendered and accepted
Looks like 20 lakh shares has been shorted through SLB mechanism.
And already price for renting shares is hovering around 62 rupees, indicating price may fall to 290 levels or below on 9th June (last day of tendering).
