Disclosure of copy of Letter of Offer received from Manager to offer i.e., "Systematix Corporate Services Limited"
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Kandagiri Spinning Mills has disclosed the final Letter of Offer for a mandatory open offer following a change-of-control deal. The acquirer, Akshayam Creations LLP (along with 4 persons acting in concert), signed a Share Purchase Agreement on February 3, 2025 to buy 24,99,509 equity shares (64.93% of voting capital) from the existing promoters at Rs. 16 per share, totalling about Rs. 3.99 crore. This triggers a mandatory open offer under SEBI takeover rules for an additional 10,00,805 shares (26% of voting capital) from public shareholders at Rs. 25 per share in cash. The tendering period runs from May 7, 2025 to May 21, 2025. The acquirer has indicated it may seek to change the company's name, alter its main objects, reconstitute the board, and possibly discontinue or diversify the existing spinning business after completion.
Public shareholders of Kandagiri Spinning Mills have a clear window (May 7–21, 2025) to tender shares at the open offer price of Rs. 25 per share, which is notably higher than the Rs. 16 negotiated under the promoter sale. However, this is a change-of-control transaction — the new acquirer may reshape the company's business direction, and there is a flagged risk of public shareholding falling below the mandatory 25% threshold, which could affect liquidity and listing compliance.