NDTV …OPEN OFFER at 294 closes 5.12 ,till now got 53 lac 27802 shares. It clearly appear to be some under hand dealing , why anyone will tender at 294 to get money after 15 days when market price is 450 odd and get money in 3 days . There is no tax benefit too as in Buyback
In case there are institutions or HNIs wanting to exit, it makes sense to use the open offer window to get liquidity. However, since the stock is doing well in the secondary market there seems to be a disconnect. One reason could be that the sellers had negotiated the open offer price with the new promoter and are sticking to their end of the deal.
For a retail investor, it is unreasonable to participate in an open offer where a price discount to the live market is present.
Some context
This is for folks who are trying to figure out why is there a difference at all.
The market price and the open offer price can be very different based on the interest of the acquirer to purchase more shares. If the acquirer does not want to take up more ownership, it’s in their interest to keep the open offer price as low as possible.
SEBI has defined how the minimum open offer price is computed:
Here is the complete takeover regulation that needs to be complied with for open offers. You can also check this Livemint article that explains the open offer pricing in simple terms.
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IS IT reasonable to expect seller is offering almost at 40% below market price ?
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Very strange even retailers giving away shares in discount , today at one point it was at upper circuit ,now closed in LC.Pure operator game.looks like will be LC till 294
Full game happening this stock.
When it comes to Adani, expect the unexpected
only time will tell will he be a bill gates or eike batista of the forbes list.
How can retail investors participate in NDTV’s open offer via Zerodha?
Why you want to tender in open offer when you can get 1.5x by selling in the market