Shares of RattanIndia Infrastructure will remain in focus in the coming days, as the open offer to its shareholders will now be speeded up following the bank guarantee provided by the company.
Recently, the Supreme Court has allowed the company to proceed with the open offer to its shareholders but with a bank guarantee.
Laurel Energetics Pvt Ltd and Arbutus Consultancy LLP (acquirers) along with four persons acting in concert (PACs) are making an open offer to the shareholders of RattanIndia Infrastructure at ₹3.2 a share. They plan to acquire 35.94 crore shares.
The open offer was necessary, as the promoters of the company, formerly Indiabulls Infrastructure, had made the mandatory open offer to buy 35.96 crore shares (26 per cent of its share capital) from investors at ₹3.20 apiece after increasing their holding by over 5 per cent in a year.
In May 2016, SEBI had directed RattanIndia promoters to pay ₹6.3 a share in addition to a 10 per cent interest on the grounds that they were not eligible to avail some of the exemptions under SEBI’s Takeover rules.
The acquirers then moved the Securities Appellate Tribunal, which also rejected the appeal of RattanIndia Infrastructure’s promoters against the SEBI order.
The apex court said the company can go ahead with the open offer at ₹3.10 a share, but asked it to secure ₹3.20 a share, which works out to ₹111.41 crore as bank guarantee within four weeks from May 2.
The company has now provided the bank guarantee with RBL Bank, as directed by the Supreme Court.