D & A Financial Services (P) Ltd ("Manager to the Offer") has submitted to BSE a copy of Recommendations of the Committee of Independent Directors (IDC) on the Open Offer to the Shareholders ....
Awaiting price reaction for this filing.
SAR Televenture Limited is making an Open Offer to acquire up to 79,11,800 equity shares (26% of the emerging share capital) of Grand Foundry Ltd at INR 2.50 per share. The Committee of Independent Directors, comprising Ms. Aishwarya Singhvi (Chairperson) and Ms. Reena Sharma, has reviewed the Public Announcement, Detailed Public Statement, Draft Letter of Offer and Letter of Offer, and unanimously recommended the offer as fair and reasonable. The offer price of INR 2.50 is higher than the SEBI-prescribed valuation of INR 2.28 per share and the negotiated price of INR 1.50 per share under the share purchase agreement. IDC members hold no shares in the target company, and the shares are classified as not frequently traded on NSE/BSE.
The IDC's favorable recommendation removes a key regulatory concern for shareholders weighing whether to tender in the Open Offer. Shareholders are, however, advised to make their own informed decision. The relatively low offer price (INR 2.50) versus valuations and the Chairperson also serving as an Independent Director on the Acquirer are points shareholders should note. In the near term, the stock may trade closer to the offer price on the exchanges due to arbitrage and tendering activity.