The floor price for the reverse book-building of 45 lakh shares was fixed at Rs 185 per share. Twinstar Holding received bids for only 22.44 lakh shares in the offer.
The acquirer has announced that it accepted the exit price of Rs 240 and will acquire all the shares tendered at or below the exit price.
Following the acquisition, the shareholding of Twinstar Holding in Malco will stand at 85.5%, down from 80% before the reverse book-building was initiated.
As per the reverser book-building guidelines, the acquirer will now make an offer for tendering of shares by the shareholders holding physical share certificates, which will open on March 24, and close on April 7.
The announcement by the acquirer denotes that one of the major investors in Malco, Tamil Nadu Industrial Investment Corporation (TIIC), which holds 3.11% in Malcos equity, which participated in the offer at Rs 2,091 per share will not be accepted.
The high bid price of Rs 2,091 was consequent to a complaint of minority shareholders to capital market regulator Securities and Exchange Board of India (Sebi). They alleged that the floor price of Rs 185 was very low and the acquirer had failed to give proper disclosure with respect to the floor price.
Minority shareholders have also urged all the balance shareholders in Malco to bid at a much higher price than what was offered by the acquirer. Sebi asked ICICI Securities, manager to the offer, to file its reply in response to the investors complaint.
Following the investors complaint with Sebi, Investors Grievances Forum (IGF), an investor association, followed up the matter with the ministry of company affairs and other regulatory agencies, besides Sebi.