Unlisted firms start acquiring medium-sized listed companies

Nisha Das
29 July 2003

Mumbai: The stringent listing process on the stock exchanges and the availability of low-valued listed companies have forced the unlisted companies with strong financial health to go for acquisition of medium-sized listed companies.

Since July 2003, around five open offers were announced and another two to three are in the offing. On 16 July, Inga Management and Investment Pvt Ltd announced that it has acquired 40,000 equity shares of Rs 10 each, representing 16.33 per cent of the paid-up equity share capital of Ishwar Textiles Ltd under an agreement dated 7 July.

On 12 July, Prakash Maheshwari & Sameer Maheshwari announced an open offer to the public shareholders of Noble Explochem Ltd to acquire 29,45,700 equity shares of Rs 10 each.

On the same day, Saleem Fazelbhoy & Amzel Pvt Ltd announced that in compliance with Securities and Exchange Board of India regulations, the company is making an offer to the fully paid-up equity shareholders of Amzel Automotive Ltd.

As on date of the public announcement, the acquirers hold 5,16,009 fully paid-up equity shares of AAL, representing 86 per cent of the total and voting capital of AAL.

Similarly, on 8 July, Chhattisgarh Electricity Company and Chhattisgarh Investments Ltd along with Sarda Agriculture & Properties Pvt Ltd and Prachi Agriculture & Properties Pvt announced an open offer to the shareholders of Raipur Alloys & Steels Ltd to acquire up to 26,16,000 fully paid-up equity shares of Rs 10 each.