Open Offer under SEBI Takeover Code

Open Offer under SEBI Takeover Code

In terms of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, an entity can acquire up to 24.99% shares or voting rights in a listed company in India (target company), provided the acquirer does not take control over the target company. However, if the acquirer becomes entitled to 25% or more voting rights in the target listed company, the acquirer is required to make an open offer to buy an additional 26% shares from the existing public shareholders of the target company. Under the rules, all the shareholders will be given the exit option at the same price.