Description

Open offer to acquire up to 34,64,900 equity shares (25.26%) of Euro Asia Exports Limited at ₹10 per share following takeover regulations.

Summary

Mr. Rajendra Kamalakant Chodankar has launched an open offer to acquire up to 34,64,900 equity shares (25.26% of expanded voting share capital) of Euro Asia Exports Limited (now known as RRP Defense Limited) at ₹10 per share. This mandatory open offer follows SEBI (SAST) Regulations 3(1) & 4 for gaining control over the target company.

Key Points

  • Offer size: 34,64,900 equity shares representing 25.26% of expanded voting share capital
  • Offer price: ₹10 per equity share (face value ₹10)
  • Payment method: Cash
  • Offer type: Mandatory under SEBI (SAST) Regulations for control acquisition
  • Not conditional on minimum acceptance level
  • Not a competing offer
  • Offer size reduced from originally planned 40,86,888 shares due to non-allotment of preferential issue

Regulatory Changes

This open offer is made pursuant to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 under Regulations 3(1) & 4. The offer complies with the minimum 26% threshold requirement under Regulation 7, though limited to available public shareholding of 25.26%.

Compliance Requirements

  • Public shareholders must respond through Form of Acceptance cum Acknowledgment
  • Shareholders who recently sold shares should forward offer documents to their stock brokers
  • Any upward revision in offer price/size must be communicated up to one working day before tendering period
  • Additional statutory approvals may be required if they become applicable before closure

Important Dates

  • Tendering period commencement: July 31, 2025 (Thursday)
  • Last date for offer price revision: One working day before July 31, 2025
  • Offer closure: 10 working days from tendering period start

Impact Assessment

This takeover represents a significant corporate control change for Euro Asia Exports Limited (RRP Defense Limited). The acquisition of 25.26% voting rights will likely result in management control transfer. Shareholders have the opportunity to exit at ₹10 per share, which equals the face value, suggesting either undervaluation or distressed situation of the target company.

Impact Justification

Major corporate takeover affecting 25.26% of company shares with control implications