Mahan Industries Ltd Announces Open Offer for Acquisition of 26% Stake
Mahan Industries Limited has announced an open offer for the acquisition of up to 2,002,000 equity shares, representing 26% of its Expanded Voting Share Capital. The offer is being made by Mr. Nishil Sanjaykumar Shah (Acquirer-1) and Mr. Niranjankumar Navratanmal Jain (Acquirer-2).The acquisition comes following a series of transactions involving preferential allotments and a share purchase agreement. Upon completion of these transactions, the Acquirers will acquire control over the Target Company and become its promoters. The existing promoter, Mr. Yogendrakumar Gupta, will relinquish control and management of the company as part of the agreement.
The Open Offer is set at a price of Rs. 12 per share, payable in cash. All public shareholders who own equity shares are eligible to participate in this offer before the expiry of the Tendering Period. The Acquirers have made firm financial arrangements to fund the acquisition of the Offer Shares.
Transaction Summary
The underlying transactions that triggered the open offer obligations include a combination of preferential allotments and a direct share purchase agreement.| Type of Transaction | Mode of Transaction | Equity Shares Acquired | % of Expanded Voting Share Capital | Total Consideration |
|---|---|---|---|---|
| Preferential Issue | Proposed Allotment | 3,200,000 | 41.56% | Rs. 3,84,00,000 |
| Share Purchase Agreement | Agreement | 52,169 | 0.68% | Rs. 6,26,028 |
Acquirer Details and Shareholding Structure
The acquisition involves a significant shift in the shareholding structure of Mahan Industries Limited. The Acquirers currently hold minimal positions but will hold a substantial majority following the completion of the transactions.| Particulars | Mr. Nishil Sanjaykumar Shah (Acquirer-1) | Mr. Niranjankumar Navratanmal Jain (Acquirer-2) | Total |
|---|---|---|---|
| Current Holding | NIL | 500 Shares (0.01%) | 500 Shares (0.01%) |
| Proposed Acquisition (Preferential) | 2,200,000 (28.57%) | 1,000,000 (12.99%) | 3,200,000 (41.56%) |
| Proposed Acquisition (Share Purchase) | 34,953 (0.45%) | 17,216 (0.22%) | 52,169 (0.68%) |
| Post-Acquisition Holding | 3,556,273 (46.19%) | 1,698,396 (22.06%) | 52,54,669 (68.24%) |
Share Purchase Agreement Details
The transaction includes a Share Purchase Agreement dated July 16, 2026, between the Acquirers and the Selling Promoter Shareholder. Under this agreement, the Acquirers agreed to acquire 52,169 Sale Shares at a negotiated price of Rs. 12 per share.| Seller Details | Pre-Agreement Holding | Post-Agreement Holding |
|---|---|---|
| Mr. Yogendrakumar Gupta | 52,169 (0.68%) | Nil (Nil) |
The Acquirers also intend to infuse additional capital into the company through the issuance of warrants on a preferential basis, subject to necessary approvals. The transaction will ensure that the public shareholding of the company does not fall below 25% in accordance with regulatory requirements.
Stock Price Movement
Mahan Industries Ltd shares rallied 4.96% to settle at ₹11.63 at the close of trade on Monday. The stock climbed steadily from a low of ₹11.08 to reach its intraday high of ₹11.63.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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