This, according to corporate observers, means that the company would not sell any productive asset but could get rid of idle assets purely on commercial considerations. In fact, Grasim has declared that it would run Shree Digvijay as a going concern on "sound commercial lines." Shree Digvijay's net losses were Rs 2.5 crore in 1995-96 (which was a nine-month accounting period), Rs 10.16 crore in 1996-97 and Rs 9.19 crore in the six months to September 30, 1997. Its current paid-up equity is Rs 7.45 crore. It reported a turnover of Rs 286.54 crore in 1996-97.

Apart from Shree Digvijay shareholders on the record date of July 10, investors whose names do not appear on the members' register can also apply to theregistrar to the offer for selling their shares. The documents to be furnished are the share certificates, transfer deeds and original contract notes issued by a registered stockbroker of a recognised stock exchange through whom the shares were acquired. If the aggregate offer exceeds 20 per cent of the paid-up equity, all valid applications will be accepted by Grasim on proportionate basis subject to a minimum of 50 shares or the entire holding if it is less than the minimum market lot of 50 shares.

Grasim intends to fund the open offer largely through internal accruals. About 25 per cent of the total consideration has been provided for in the form of bank guarantees of Rs 5.30 crore.