Open Offer

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Overview:

Recently, Adani Group launched its open offer to acquire an additional 26 per cent stake in NDTV. The offer will remain open until December 5, 2022.

About:

  • According to the SEBI (Substantial Acquisition of Shares and Takeovers) Rules, an open offer is an offer made by the acquirer to the shareholders of the target company inviting them to tender their shares in the target company at a particular price.
  • The primary purpose of an open offer is to provide an exit option to the shareholders of the target company on account of the change in control or substantial acquisition of shares, occurring in the target company.

When is an open offer triggered?

  • An open offer is triggered if an acquirer holds more than 25 per cent of the public shareholding in the company.
  • Prior to 2011, when the new takeover norms kicked in, an open offer got triggered if an acquirer owned more than 15 per cent of the public shareholding in a company.

Source : Indian Express