Prabhat Capital's Open Offer for Esaar India Receives Minimal Response
Prabhat Capital Investments Limited's open offer for Esaar (India) Limited concluded with a significantly lower-than-expected response. The offer aimed to purchase 53,15,050 equity shares (26% of voting share capital) at Rs. 8.00 per share. Only 1,548 shares were tendered and accepted, totaling Rs. 12,384, far below the proposed Rs. 4,25,20,400. Post-offer, Prabhat Capital's shareholding increased marginally from 3.10% to 3.11%, falling short of the intended 29.10%. The minimal response suggests a lack of interest from Esaar's shareholders in divesting at the offered price.
*this image is generated using AI for illustrative purposes only.
Esaar (India) Limited 's open offer from Prabhat Capital Investments Limited has concluded with a significantly lower-than-expected response, according to a post-offer advertisement submitted by Navigant Corporate Advisors Limited.
Offer Details
The open offer aimed to purchase up to 53,15,050 equity shares, representing 26% of the voting share capital of Esaar. The offer price was set at Rs. 8.00 per share, potentially valuing the deal at Rs. 4,25,20,400.
Minimal Response
Despite the sizeable offer, the actual response was minimal:
- Only 1,548 shares were tendered and accepted during the offer period
- The total value of accepted shares amounted to just Rs. 12,384, a fraction of the proposed amount
Shareholding Impact
The outcome of the open offer has resulted in a significant deviation from the intended shareholding structure:
| Shareholding | Pre-offer | Post-offer | Intended |
|---|---|---|---|
| Prabhat Capital | 6,34,688 (3.10%) | 6,36,236 (3.11%) | 59,49,738 (29.10%) |
| Public | 96.90% | 96.89% | - |
Market Communication
The post-offer advertisement was published in Financial Express, Jansatta, and Pratahkal newspapers, fulfilling regulatory requirements under SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011.
Implications
The minimal response to the open offer suggests a lack of interest from Esaar's shareholders in divesting their holdings at the offered price. This outcome may prompt Prabhat Capital Investments Limited to reassess its acquisition strategy for increasing its stake in the target company.
Despite the low acceptance rate, the open offer process has been completed in compliance with regulatory requirements, as evidenced by the timely publication of the post-offer advertisement and the involvement of Navigant Corporate Advisors Limited as the manager to the offer.
Investors and market observers will likely be watching closely to see how Prabhat Capital proceeds following this unexpected outcome, and whether it will pursue alternative methods to increase its stake in Esaar in the future.
Historical Stock Returns for Esaar
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.93% | +7.30% | -17.16% | +22.50% | +144.55% | +845.00% |
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