Promoters had increased their stake from 50.14% to 55.04% last month through block deals. To buy another 10% at Rs 160 per share, promoters will have to shell out around Rs 5,952 crore.
As per the Sebi takeover code promoters holding more than 25% but less than 75% can buy upto 5% through creeping acquisition in one financial year. Any acquisition of further shares beyond 5% should require the acquirer to make an open offer.
ET on 19 November 2020 reported that Anil Agarwal’s holding company may announce an open offer soon to increase promoters’ stake.
Any increase in promoters stake will make it easier for them to delist after one year of cooling off period. Promoters of listed Indian companies will have to acquire at least half the public shareholding in their firms or 90% of the total equity capital whichever is higher to become eligible for delisting.
During the delisting offer in October, promoters were able to get only 125.47 crore confirmed bids against the required 134.1 crore shares. About 12.32 crore shares tendered were not confirmed and as a result, the delisting process failed. Once failed, promoters cannot launch a delisting offer within one year of the completion of the open offer period. During the buyback offer, many of the domestic mutual funds were tendered their shares at Rs 150-160 per share.