Even though the share price of VST Industries on Monday reached the level of the open offer price of Rs 112 at both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the Damani group has decided to wait for the counter offer before raising the offer price.

Speaking to The Financial Express, Ms Kavita Pasricha, VP corporate finance at the group's merchant banker ASK-Raymond James said:"Whatever we have seen at the markets is a market perception to the offer. The market feels that a counter-offer will be in place shortly and it is reacting in anticipation of that, but unless we get a counter-offer we are not going to revise the offer price.''

It is less than a week since the Damanis announced the open offer, and the stock of VST Industries has already touched the open offer price of Rs 112 at both the premier bourses. The share price saw a minor rise of 0.45 per cent at Rs 112 on BSE while on NSE it gained 0.81 per cent at Rs 112.15. The counter also clocked combined trading volume of 53,727 shares on Monday.

The RS Damani and GS Damani controlled Bright Star Investments Ltd (Bright Star) - which acquired 14.97 per cent in VST Industries - has made an open offer to all public shareholders of VST at Rs 112 per share to acquire the outstanding 30,88,384 equity shares representing 20 per cent in the company on February 13.

The offer price was at a premium of 26.5 per cent over the closed price of Rs 88.60 per share at the BSE on Tuesday last. The offer is expected to open at the end of March and will close in April-end. The paid-up equity capital of the Rs 748-crore cigarette maker, VST, is Rs 23.44 crore.