Bajaj Electricals promoters make open offer for 7% stake
Mr Rahul Bajaj and his cousins — Mr Shekhar Bajaj, Mr Madhur Bajaj, and Mr Niraj Bajaj — constituting a section of the promoter group in Bajaj Electricals made an open offer to the public to acquire a 7 per cent stake in the company, it informed the BSE on Tuesday. The promoters are offering to buy it at a price of Rs 389 per share. The company’s shares closed at Rs 428 at the BSE on Tuesday.
“The open offer doesn’t make sense in investors’ point of view. Nobody would sell their shares when the market price is much higher. They will have to revise their offer,” said Ms Anita Gandhi, Head of Institutional Business, Arihant Capital Markets. The offer is to acquire up to 12.10 lakh fully-paid up equity shares for up to Rs 47.06 crore.
The promoters have said that the open offer is being made as they want to consolidate their holding in the company, while ensuring that the public shareholding does not fall below 25 per cent — the minimum level of public ownership permitted by the listing agreement.
The promoters hold 67.41 per cent, according to the data on shareholding pattern as of September 30, leaving the balance (32.59 per cent) with the public. The opening date of the offer is January 24, 2008, and closing date is February 12.
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