Open Offer

An open offer is a mandatory public offer made by an acquirer to purchase shares from public shareholders upon acquisition of substantial shareholding or control, ensuring minority shareholders are provided a fair exit opportunity under SEBI (SAST) Regulations.

Any acquirer—individual, entity, or promoter—crossing specified shareholding thresholds or acquiring control in a listed company is required to make an open offer in compliance with SEBI regulations.

The offer price is determined based on SEBI-prescribed parameters, including historical trading prices, volume-weighted averages, and negotiated acquisition price, ensuring fairness and transparency for public shareholders.

Typically, an open offer must be made for at least 26% of the total share capital of the target company, subject to specific exemptions and transaction structures permitted under regulations.

Yes, promoters may increase shareholding via an open offer, subject to compliance with pricing norms, public shareholding requirements, and minimum acceptance conditions under SEBI guidelines.

The open offer process generally spans several months, covering regulatory filings, SEBI observations, offer period, and settlement, depending on transaction complexity and regulatory review timelines.

Post completion, the acquirer must comply with disclosure requirements, update shareholding patterns, and adhere to ongoing regulatory obligations as prescribed by SEBI and stock exchanges.