Description

Open offer by Pareshbhai Gushabhai Satani and associates to acquire up to 52,00,000 equity shares representing 26% of expanded capital of Deccan Bearings Limited at ₹10 per share.

Summary

Pursuant to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Pareshbhai Gushabhai Satani, Tanuj Pareshkumar Satani, Chirag Ramjibhai Satani, and Ramjibhai Gushabhai Satani (collectively “Acquirers”), along with six Persons Acting in Concert (PACs), have launched an open offer to acquire up to 52,00,000 equity shares of Deccan Bearings Limited. The offer represents 26% of the expanded capital on a fully diluted basis at an offer price of ₹10 per equity share. The Letter of Offer has been dispatched to all eligible public shareholders.

Key Points

  • Offer Size: Up to 52,00,000 equity shares (26% of expanded capital)
  • Offer Price: ₹10 per equity share of face value ₹10 each
  • Target Company: Deccan Bearings Limited (CIN: L29130MH1985PLC035747)
  • Acquirers: Four individuals from the Satani family - Pareshbhai, Tanuj, Chirag, and Ramjibhai
  • PACs: Six persons acting in concert with the acquirers
  • Public Shareholding: 54,80,861 shares (including existing public shareholders with 4,28,622 shares and proposed preferential allottees with 50,52,239 shares)
  • Target Company Location: Registered office at 103, B Wing, Ansa Industrial Estate, Saki Vihar Road, Sakinaka, Andheri (East), Mumbai 400072

Regulatory Changes

This open offer is being conducted in compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The offer follows mandatory disclosure requirements and procedural norms for takeover offers as prescribed by SEBI.

Compliance Requirements

  • Public Shareholders: Must review the Letter of Offer carefully and decide whether to tender their shares
  • Recent Sellers: Those who have sold equity shares should forward the Letter of Offer and Form of Acceptance-cum-Acknowledgement to the purchaser or stock exchange member
  • Shareholders Seeking Clarification: Can consult stockbrokers, investment consultants, Manager to the Offer, or Registrar to the Offer
  • Acquirers: Must complete acquisition within 10 working days from closure of tendering period

Important Dates

  • Reference Date for Expanded Capital: 10th working day from closure of tendering period of the open offer
  • Dispatch Date: Letter of Offer has been dispatched to eligible shareholders
  • Specific tendering period dates are referenced but not fully detailed in the excerpt provided

Impact Assessment

High Impact on Shareholders: This takeover offer significantly affects existing public shareholders of Deccan Bearings Limited, who must make critical decisions about tendering their shares. The acquisition of 26% stake represents substantial change in ownership structure. The offer price of ₹10 per share (at par with face value) requires shareholders to evaluate against current market price and intrinsic value. The involvement of multiple acquirers and PACs indicates a coordinated effort to gain significant control over the target company, potentially leading to changes in management and strategic direction.

Impact Justification

Major corporate action involving acquisition of 26% stake in Deccan Bearings Limited through open offer, materially impacting existing shareholders who must decide on tendering their shares.