The offer price is higher than the 26-week average price of the scrip at Rs 47 and 18.27 per cent more than the market price of PHL scrip (Rs 46.5) on September 11, 1998. However, the aquirers are paying a small premium of around Rs 5 as against the current market price of PHL on the Bombay Stock Exchange.

The directors of the acquirers, their relatives and associate corporate bodies (Piramal Enterprises, Vulcan Investments, Piramal Texturising Ltd, Legend Pharma Ltd, Glass Engineers and Piramal Polymers) together hold 72.7 per cent (or 72.74 lakh shares) stake in PHL. The present offer is in compliance with the Sebi(Substantial Acquisition of Shares and Takeover) Regulations, 1997.

Since the offerers are picking up the entire floating stock of 27.31 lakh shares, there is a possibility of delisting of the PHL scrip from the bourses. If post-offer public holdings fall below 10 per cent, the acquirers will further make an open offer to pick up the balance shares.

The acquirers are part of Piramal Enterprises group which is headed by Ajay Piramal. The objective of the open offer is to provide an exit route to the shareholders as their holding in PHL is illiquid and a large number of public shareholders hold odd lot shares.

The pharmaceutical division of PHL, formerly known as Piramal Healthcare, was spun off and merged with Nicholas Piramal Ltd. All the shareholders, hence, were issued shares in Nicholas Piramal in the ratio of three shares of NPIL for every four shares of PHL. After the hiving off the healthcare division, PHL had changed its primary activity from pharmaceuticals to real estate development.

PiramalHoldings is expected to complete the development of its ultra-modern shopping mall-cum-family entertainment centre at Tardeo in Mumbai by March 1999.

The civil and structural work at this centre are at an advanced stage, and the company has attracted top retail brands in the country and abroad, which have expressed an interest in being part of the complex.The acquirers are meeting the fund requiremet of around Rs 15 crore through borrowings.

They have also created an escrow account and deposited Rs 7.88 crore in accordance with Regulation 28 of Takevoer Code and have deposited Rs 15 lakh with Allahabad Bank. The specified date has been fixed as on September 18, 1998. Managed by DSP Merrill Lynch, the offer opens on September October 30 and closes on November 28.