In a significant corporate development, Erramilli Venkatachalam Prasad and Rodrigues Bhagvandas Lily have announced an open offer to acquire 100% of the public shareholding of Cupid Breweries and Distilleries Limited (formerly Cupid Trades and Finance Limited). The proposed offer price is ₹71.80 per share, which includes an interest component of ₹11.80 per share, bringing the total offer value to ₹6.89 crore. The offer period is scheduled from December 8, 2023, to November 24, 2025, spanning 717 days.
Open Offer Structure
The open offer seeks to acquire 9,60,000 fully paid-up equity shares, representing the entirety of the company’s public shareholding. The interest component has been included to account for the delay in executing the open offer, calculated at 10% per annum for the offer period.
Regulatory Compliance
The acquisition is being executed in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Specifically, it adheres to Regulations 3(1) and 4, read with Regulations 13, 14, and 15(1), ensuring the process meets SEBI’s regulatory framework for substantial acquisitions and takeovers.
Committee of Independent Directors’ Recommendation
The Committee of Independent Directors (IDC) of Cupid Breweries and Distilleries has reviewed the offer and deemed the price of ₹71.80 per share as fair and reasonable, consistent with SEBI guidelines. The committee also confirmed that the open offer complies with SEBI (SAST) Regulations, 2011. However, they highlighted that the company’s shares are currently trading above the offer price on the BSE, creating a unique scenario for investors evaluating their options.
Market Implications
This open offer presents an opportunity for public shareholders to exit their holdings with an interest-adjusted price. At the same time, shareholders may weigh the offer against the prevailing market price, which could influence their decision-making. The open offer marks a key development in Cupid Breweries’ ownership structure and could affect market perception and liquidity.
As the process unfolds, investors are advised to stay informed on market movements and company announcements, and to seek professional guidance before making decisions regarding the open offer. The acquisition underscores the growing trend of substantial shareholding consolidations in India’s corporate landscape.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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