The shareholders now have the option of either booking heavy losses or holding on to the scrip. The shareholders are getting an opportunity to offload the shares of Diamines and Chemicals at a price of Rs 2 when the current market price is Rs 5. The acquirers of Claro India offer to buy equity shares from shareholders at a price of Rs 2.5. Although the offer price is certainly higher than the current market price of Rs 1.5, this may not provide any reprieve to shareholders.

The Claro India scrip went below par in October, 1995, and touched a low of just 50 paise in August, 1998. On news of the open offer, the scrip rose from Rs 1.4 on September 24 to Rs 1.5 on October 27. However, the scrip is still tradingbelow the open offer price.

On the other hand, the open offer price in Diamines and Chemicals is at a 60 per cent discount to the current market price of Rs 5. The acquirers, Alkyl Amines Chemicals and Amit Mehta with relatives and friends, offer to pick up 7.6 lakh shares from public at a price of Rs 2. This is 20 per cent of the paid-up capital of Rs 3.71 crore. The open offer follows a negotiated deal struck by the acquirers under the Sebi (SAST) Regulations, 1997. The acquirers are picking up 12.06 lakh shares (representing 31.78 per cent) at a price of Rs 2 from Sintex Industries Ltd. Alkyl Amines Chemicals, incorporated on October 17, 1979, is into the manufacture and marketing of aliphatic amines and amines derivatives.

Diamines & Chemicals, incorporated on May 12, 1979, manufactures ethyleneamines and polyamines. A sick company, Diamines & Chemicals has posted a total income of Rs 8.89 crore for fiscal 1998 against Rs 18.5 crore for fiscal 1997. The company recorded a net loss of Rs 4.75 crore.The object of the current acquisition is to rehabilitate the sick company. Managed by DSP Merrill Lynch, the open offer opens on December 9 and closes on January 8. The acquirers have firm arrangements through internal accruals to meet the funding requirements for the open offer and have created an escrow account.

Kothari Plantations and Industries is offering to acquire up to 27.5 lakh shares (55 per cent of the paid-up capital of Rs 5 crore) at Rs 2.5 from the shareholders of Claro India. Kothari Plantations has already entered into an agreement with Surinder Wazir, Asha Wazir and Libra (Agencies) Pvt Ltd to acquire 24.95 per cent or 12.47 lakh shares at a price of Rs 2.5.

The acquirer, a part of GD Kothari group of Calcutta engaged in the business of cultivation, manufacture and sale of tea, does not hold any shares in Claro India.

Due to heavy overheads and high cost of finance, Claro India has been short of working capital. The company slipped into the red in fiscal 1996-97, resulting inaccumulated losses of Rs 2.93 crore as on March 31, 1998. The company is a BIFR case and the plant, at present, is closed down. Lead managed by VCK Capital Market Services, the open offer opens on December 8 and closes on January 7, 1999.