Otis Consortium open offer for Otis India at Rs 280 per share

Our Corporate Bureau

Mumbai, May 16: OTIS Consortium has made an open offer to the shareholders of Otis Elevator Co (India) at Rs 280 per share.

The offer is not conditional on any minimum level of acceptance. The offer would open on July 9 and close on August 7.

Otis Mauritius Ltd, along with Otis Elevator Company (New Jersey), Otis Elevator Company (S) Pte and Otis Elevator Company (HK), is making the offer to the shareholders of Otis Elevator Company (India) to acquire up to 39,01,478 fully paid-up equity shares of Rs 10 each, representing 31.1 per cent of the paid-up equity share capital being the balance outstanding equity share capital of Otis India at a price of Rs 280 per fully paid-up equity share payable in cash.

Shares of Otis Elevator opened significantly higher on Wednesday, peaking at the eight per cent upper circuit level of Rs 243, compared to its Tuesday’s close of Rs 225.

The scrip touched for the third consecutive day the 8 per cent upper circuit filter on Wednesday after closing at Rs 193 on Friday, May 11. This translates to a gain of Rs 50, a 26 per cent hike in three trading sessions. Otis scrip recorded thin volumes of around 1,500-odd shares on the BSE on Wednesday, with more than 31,000 buyers in queue, marketmen said.

Otis India was earlier a joint venture between Otis Elevator Company and the Mahindra & Mahindra group.
Otis Elevator Company, a part of United Technologies Corp, which then held a 45.01 per cent stake in Otis India Ltd, bought out the entire 23.89 per cent stake held by Mahindra Holdings and Finance Ltd, a Mahindra group company. The stake was further increased through the purchase of the shares by its wholly-owned subsidiary Otis Singapore.