India Cements, which has acquired 90.71 per cent of the shareholding of Raasi Cement, has made the latest offer to buy the remaining shares with the public. The takeover regulation requires that in the process of a takeover, if the public holding is reduced to 10 per cent or less, the acquirer has to make an offer to buy out the outstanding shares remaining with the shareholders at the same offer price. This will result in delisting of the target company from the stock exchanges.

India Cements had made its first open offer to the shareholders of Raasi during March. The latest offer will close on October 3. The company has already mailed offer letters to shareholders whose names appear in the books as on August25.

Investors holding Raasi Cement shares would be able to make a gain of Rs 45 to Rs 50 as the current market price is ruling around Rs 250. Raasi Cement shares have been on the rise, in anticipation of the open offer to buy the outstanding shares. The scrip started rising from Rs 189 on July 28 to Rs 268 on August 7. After peaking at Rs 275, the scrip has been on the slide.

India Cements is coming out with a 1:1 rights issue of Rs 160 crore which will help finance the takeover of Raasi. India Cements share is quoting at its all-time low of Rs 44, forcing the company to charge a premium of Rs 15 on the rights issue.

India Cements is coming out with a 1:1 rights issue of Rs 160 crore which will help finance the takeover of Raasi. India Cements share is quoting at its all-time low of Rs 44, forcing the company to charge a premium of Rs 15 on the rights issue. The company has already filed the offer document with the Securities and Exchange Board of India (SEBI) and is awaiting clearance from the nodalagency. The premium of Rs 15 will be more attractive once the share starts moving northward from its current bottom. India Cement has appointed DSP Merrill Lynch as lead manger to the issue. Besides the rights issue, the balance funds will be raised through placement of shares, a preference issue of Rs 50 crore and internal accruals.

With the takeover of Raasi, the total capacity of India Cement will be 7.5 million tonne, making it the largest cement manufacturer in the south.