Kunvarji Finstock Pvt Ltd ("Manager to the Offer") has submitted to BSE a copy of Draft Letter of Offer to the Public Shareholders of Avishkar Infra Realty Ltd ("Target Company").
Awaiting price reaction for this filing.
Kunvarji Finstock, the manager to the offer, has filed a Draft Letter of Offer with BSE for a mandatory open offer in Avishkar Infra Realty Ltd. The open offer was triggered because Mr. Niraj Harsukhlal Sanghavi, along with persons acting in concert (his two daughters and Kenilworth Consultancy Services LLP), received 60 lakh equity shares (26.78% of expanded voting share capital) via a preferential allotment on February 13, 2024 at Rs.10 per share, crossing the 25% threshold under SEBI's Takeover Code. The acquirer and PACs are now offering to buy up to 58,24,853 shares (26% of expanded voting share capital) from public shareholders at Rs.16 per share, totalling about Rs.9.32 crore. The offer opens on October 31, 2025 and closes on November 14, 2025. Post-offer, the acquirer group will hold 52.9% of the company but will continue to be classified as public shareholders with no change in control. The filing also notes that the acquirer had earlier failed to make the open offer on time after the preferential issue, which is the reason for this delayed compliance.
Public shareholders of Avishkar Infra Realty get a chance to exit at Rs.16 per share, which is 60% above the preferential issue price of Rs.10. However, the offer size is relatively small and the acquirer's regulatory track record (including past SEBI penalties for market manipulation and an unpaid penalty of Rs.6 lakh) may be a concern for investors assessing the counterparty risk.