Open Offer helps companies, viz., Bombay Rayon, Camlin and Sabero Organics, limit fall

Shares of three out of the five companies, which have announced open offer price but are awaiting SEBI’s final nod, have managed to hold ground in the broad market slide in the past one month.

Bombay Rayon, Camlin and Sabero Organics shares have fallen 2-5% in a month compared to the BSE mid-cap index’s drop of 9% and small-cap index’s decline of 11%.

Brokers say these stocks have not fallen as much as their benchmark in absence of floating stock, with strong arbitrageurs holding on to them to submit in their proposed open offer.

Shares of KSK Energy and Mudra Lifestyle, which are also waiting for SEBI’s approval to go ahead with their open offers, have fallen 10% and 14%, respectively, in a month. A broker said investors have locked in as much as Rs 4,000-5,000 crore in these stocks to participate in their open offers.

(Contributed by Nishanth Vasudevan)