The Hindu Business Line : Emami ups open offer price for Zandu to Rs 16,500 a share

Kolkata, Oct. 3 Emami, along with four PACs (persons acting in concert), has revised the open offer price further upwards by 10 per cent to Rs 16,500 for acquisition of a Zandu Pharmaceuticals Works share with a face value of Rs 100 each. The original open offer price of Rs 7,315 in June was revised last month to Rs 15,000 per equity share.

The Zandu stock reacted positively on Friday to close at Rs 15,960.80 on the BSE. However, trading volume did not improve much and stood at 1,376 shares against the fortnightly average of 1,055 shares. On the NSE, the counter clocked a traded quantity of 1,706 shares.

According sources close to Emami, sweeteners were added to ensure a maximum response. The current offer price would lessen the shareholder’s tax burden. Public shareholding (excluding that of the Emami group) is over 50 per cent in Zandu.

With legal hurdles off the way, the open offer had opened on September 26, with the earlier price of Rs 15,000 each and is to close on October 15, according to Anand Rathi Financial Services, the manager to the open offer.

Though, there was no official word from the Emami group on the response, in the last five working days after the offer opened, there was a slow flow of submissions by Zandu shareholders, according to market sources.

The price behaviour of Zandu stock after the offer was first announced in June was one of upward movement, which peaked on July 24 at Rs 24,643.20. Later, of course, it came down substantially. After September 26, the stock price started begun to move above the earlier offer price. On September 26, it closed at Rs 14,982; but on Wednesday, it finished at Rs 15,254.

Emami, on the other hand, has been sliding. In the past one month, the Rs 10 share has shed around 12 per cent and in the weekly loss now stands at 4 per cent. It dipped 4.7 per cent on Friday to close at Rs 273.