Acquirers to Launch Open Offer for Mahan Industries Limited
Acquirers Mr. Nishil Sanjaykumar Shah and Mr. Niranjankumar Navratanmal Jain have announced an open offer to acquire up to 20,02,000 equity shares of Mahan Industries Limited. The offer represents 26% of the company's Expanded Voting Share Capital and is being made at a price of Rs. 12 per share, payable in cash.The acquisition follows a significant shift in the ownership structure of the target company. The transaction was triggered by a combination of a proposed preferential allotment and a private share purchase agreement. Under the terms of the agreement, the acquirers have agreed to acquire 52,169 shares from the selling promoter shareholder, Mr. Yogendrakumar Gupta, at a negotiated price of Rs. 12 per share.
Upon completion of these underlying transactions, the acquirers will gain control over Mahan Industries Limited and become the promoters of the company. The outgoing promoter, Mr. Yogendrakumar Gupta, will relinquish management control and be declassified from the promoter category.
Transaction Summary
The following table details the primary components of the transaction that triggered the open offer obligations:| Type of Transaction | Mode of Transaction | Equity Shares Acquired | % of Expanded Voting Share Capital | Total Consideration |
|---|---|---|---|---|
| Preferential Issue | Proposed Allotment | 32,00,000 | 41.56% | Rs. 3,84,00,000 |
| Share Purchase Agreement | Agreement | 52,169 | 0.68% | Rs. 6,26,028 |
Acquirer Details and Holdings
The two entities involved in the acquisition hold various positions within the company and are positioned to significantly increase their stake following the completion of the offer.| Details | Mr. Nishil Sanjaykumar Shah (Acquirer-1) | Mr. Niranjankumar Navratanmal Jain (Acquirer-2) | Total |
|---|---|---|---|
| Pre-transaction Shareholding | NIL | 500 | 500 |
| % of Expanded Voting Share Capital | NIL | 0.01% | 0.01% |
| Shares acquired via Preferential Issue | 22,00,000 | 10,00,000 | 32,00,000 |
| % via Preferential Issue | 28.57% | 12.99% | 41.56% |
| Shares acquired via Purchase Agreement | 34,953 | 17,216 | 52,169 |
| % via Purchase Agreement | 0.45% | 0.22% | 0.68% |
| Proposed holding after acquisition | 35,56,273 | 16,98,396 | 52,54,669 |
| % of Expanded Voting Share Capital | 46.19% | 22.06% | 68.24% |
The acquirers also intend to infuse additional capital into the target company through the issuance of warrants on a preferential basis, subject to necessary approvals. The current professional roles of the acquirers include Mr. Shah serving as a Professional Director and Mr. Jain serving as a Professional Director and CFO of the target company.
The open offer is not conditional upon any minimum level of acceptance. The acquirers have confirmed they have made firm financial arrangements to fund the purchase of the shares. The management intends to maintain the current listing status of Mahan Industries Limited, and no delisting offer is proposed.
VMM Stock Price Movement
Vishal Mega Mart Limited shares today slipped by 1.19% to settle at ₹112.46 after falling from the previous session's close. The stock saw active participation with a volume of 4.54 million shares as it traded within a daily range of ₹112.11 to ₹115.06.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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