The Committee of Independent Directors of Lords Chloro Alkali Limited has given its stamp of approval to the open offer made by Mr. Madhav Dhir, Ms. Srishti Dhir, and Dhir Hotels and Resorts Private Limited. The offer aims to acquire 92,75,000 equity shares, representing 36.87% of the company's paid-up equity share capital, at a price of INR 47.75 per share.

Key Highlights of the Open Offer

The committee has deemed the offer fair and reasonable under SEBI takeover regulations. This voluntary open offer is aimed at consolidating shareholding to the maximum permissible non-public shareholding limit.

Valuation Considerations

The offer price of INR 47.75 per share was determined after considering various valuation parameters:

The independent chartered accountant's valuation was based on comparable trading multiples.

Market Context

The committee highlighted two important factors:

1. The company's equity shares are not frequently traded.
2. The profit after tax has been unstable over the past three financial years.

These factors provide context for the open offer and its pricing, suggesting that the offer price of INR 47.75 represents a premium over recent trading prices and valuations.

The open offer by the Dhir Group appears to be a strategic move to increase their stake in Lords Chloro Alkali Limited. For existing shareholders, this offer presents an opportunity to exit at a price that the independent directors have deemed fair, considering the company's trading patterns and financial performance.

Lords Chloro Alkali Limited , a prominent player in the chemical industry, has announced a significant move to bolster its financial position. The company's Board of Directors has given the green light to raise funds up to ₹300.00 crores through a qualified institutional placement (QIP) of equity shares.

Key Details of the Fundraising Plan

• Fundraising Method: The company will issue equity shares through a Qualified Institutional Placement (QIP).
• Amount: The approved fundraising is for an aggregate amount of up to ₹300.00 crores.
• Implementation: The fundraising will be conducted in one or more tranches and/or one or more issuances.

Regulatory Compliance and Approvals

The company's statement, filed with the stock exchanges, emphasized that the fundraising is subject to necessary approvals, including:

1. Approval from the members of the company
2. Regulatory clearances
3. Statutory approvals as required

Legal Framework

The QIP will be carried out in accordance with:

• The applicable provisions of the Companies Act, 2013
• The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
• Other applicable laws

Annual General Meeting Announcement

In the same board meeting, Lords Chloro Alkali Limited also announced that its 46th Annual General Meeting (AGM) is scheduled.

Market Impact

The decision to raise funds through a QIP could have significant implications for Lords Chloro Alkali Limited. QIPs are often used by companies to raise capital quickly from institutional investors, which can help in expanding operations, reducing debt, or funding new projects.

Investors and market analysts will be closely watching how the company utilizes these funds and the impact on its future growth prospects. The success of this QIP could be a key indicator of institutional investor confidence in Lords Chloro Alkali Limited's business model and growth strategy.

As the company moves forward with this fundraising initiative, stakeholders will be keen to see how it translates into value creation and strengthens Lords Chloro Alkali's position in the chemical industry.