The Hindu Business Line : Good response to Grasim open offer for UltraTech Cemco

GRASIM Industries said there has been an "overwhelming response" to its open offer for 30 per cent stake in UltraTech Cemco, the cement business recently demerged from Larsen & Toubro.

The open offer, priced at Rs 342 per share, closed today.

Over 600 lakh shares of UltraTech, constituting around 70 per cent of the 839 lakh shares which qualified to participate in the open offer, were tendered in the open offer as at the time of Grasim issuing a news release to announce this.

The acceptance ratio is likely to be around 60 per cent, said the release. The open offer was for acquisition of up to 373.19 lakh shares at a face value of Rs 10 each and constituting 30 per cent of the paid up capital of the company.

Grasim said that there was participation from all sections of shareholders of UltraTech. These included the retail public, domestic mutual funds, banks, FIIs, GDR holders and financial institutions.

It is not known how much each section has tendered, but the financial institutions, which hold close to 30 per cent stake in UltraTech, are known to have, in principle, agreed to the tendering of shares owned by them.

The company has already deposited the full value of the 30 per cent open offer, equivalent to Rs 1,279 crore, in escrow, and will make the payments to the successful offerees according to the schedule, said the release.