Description

Open offer by AVB Endeavors Private Limited, Prilika Enterprises Private Limited, and Mr. Aditya Vikram Birla to acquire up to 50% voting share capital of Shashank Traders Limited at ₹30 per share.

Summary

AVB Endeavors Private Limited, Prilika Enterprises Private Limited, and Mr. Aditya Vikram Birla (collectively “Acquirers”) have launched an open offer to acquire up to 15,46,900 equity shares representing 50% of the voting share capital of Shashank Traders Limited (CIN: L52110DL1985PLC021076). The offer price is ₹30 per equity share of face value ₹10, aggregating to ₹4.64 crore, payable in cash. This offer is made pursuant to Regulations 3(1) and 4 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Key Points

  • Offer to acquire 15,46,900 fully paid-up equity shares (50% of voting share capital)
  • Offer price: ₹30 per equity share (face value ₹10)
  • Total consideration: ₹4,64,07,000 (₹4.64 crore)
  • Payment mode: Cash
  • This is an unconditional offer (not subject to minimum level of acceptance)
  • No competing offer exists as on the date of this letter
  • Target Company registered office: 702-A, Arunachal Building, 19, Barakhamba Road, Connaught Place, New Delhi - 110001

Acquirer Details

AVB Endeavors Private Limited (Acquirer 1)

  • Address: 19 Manohar Pukur Road, Cosmic Tower, 3rd Floor, Sarat Bose Road, Kolkata – 700029
  • Contact: +91 33 79647499
  • Email: avbendeavors@gmail.com

Prilika Enterprises Private Limited (Acquirer 2)

  • Address: 19, Monohar Pukur Road, Cosmic Tower, 4th Floor, Sarat Bose Road, Kolkata - 700029
  • Contact: +91 8336913764
  • Email: prilikaenterprise@gmail.com

Mr. Aditya Vikram Birla (Acquirer 3)

Regulatory Framework

  • Offer made under Regulations 3(1) and 4 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
  • Not a conditional offer under Regulation 19(1)
  • Not a competing offer under Regulation 20
  • As on the date of this letter, no statutory or other approvals required to acquire tendered shares
  • If any statutory approvals become applicable, the offer will be subject to such approvals
  • Where approvals extend to some but not all eligible shareholders, acquirers may make payment to shareholders for whom no approvals are required

Compliance Requirements

For Shareholders:

  • Review the Letter of Offer and accompanying Form of Acceptance cum Acknowledgement and Transfer Deed
  • Consult stock broker, investment consultant, or manager/registrar for clarifications
  • If shares were recently sold, hand over the Letter of Offer to the stock exchange member through whom sale was executed
  • Shareholders wishing to tender shares must submit acceptance forms as per specified procedure

Target Company Contact:

Important Dates

  • Offer opening date: To be specified in detailed public announcement
  • Offer closing date: To be specified (will be same as any competing offers if they arise)
  • If competing offers emerge, all subsisting bids will open and close on the same date

Impact Assessment

Shareholder Impact:

  • High impact on existing public shareholders who will have opportunity to exit at ₹30 per share
  • Significant ownership change expected as acquirers seek to acquire 50% voting control
  • Shareholders must make timely decisions on tendering their shares

Company Impact:

  • Material change in shareholding pattern and control structure
  • Potential change in management and strategic direction post-acquisition
  • Trading activity in the scrip may increase during offer period

Market Impact:

  • Transparent price discovery at ₹30 per share for Shashank Traders Limited
  • Sets valuation benchmark for the company
  • Demonstrates active M&A activity in the small-cap segment

Impact Justification

Major takeover offer involving 50% voting share capital of a listed company, requiring immediate shareholder action and significant ownership change