Open offer to acquire 26 per cent stake in Suzlon draws poor response

NEW DELHI: The open offer by billionaire Dilip Shanghvi-controlled entities along with promoters of Suzlon for 157.64 crore shares managed to get only 4,295 offers.

It, however got the entire 100 crore shares or 16.49 per cent preferential issue fully subscribed, stated a post offer statement issued by the company.

Shanghvi and associates had made an offer of Rs 18 per equity share, which closed at Rs 18.85 per piece at BSE today.

Under the open offer, Shanghvi and associates had to acquire 26 per cent stake for Rs 2,837 crore in the wind turbine maker.

The offer, that began on December 28 and closed on January 8, 2016, came after Shanghvi decided to acquire 23 per cent stake in Suzlon with an equity investment of Rs 1,800 crore. The deal was announced earlier this year.

Shanghvi-controlled entities along with Tulsi Tanti and other promoters of Suzlon had made the open offer to the shareholders for purchasing more than 157.64 crore shares.

IndusInd Bank Ltd was the manager to the open offer.