The offer document was submitted today, to Sebi under regulation 15 of Takeover Code, by Lazard Credit capital Ltd who have been appointed as manager to the offer by acquirer, B V Raju and Kalahastheeswar Finance P Ltd.

According to the offer document, the public offer is being made to comply with legal requirements that the promoter must make if he proposes to present a non-disposal undertaking to any financial institution. However, the market sources viewed the move as a consolidation operation by the Raju group to thwart possible takeover in the future.

The news of openoffer fuelled stock prices at bourses. The companys share on Monday shot up from Rs 19.30 to Rs 22.65 on NSE. About 46,000 shares changed hands today, says a NSE broker here.

At present, Raju and associates are holding about 43.88 per cent in the company which will include the disputed 93,68,600 shares originally held by Raasi Cement before ICL took it over. In its recent board meeting the new Raasi management decided to review the earlier boards resolution to divest Sri Vishnu Cement shares.

In the post public offer, the core promoter group may increase their holding in Sri Vishnu Cement over 60 per cent, provided the issue receives favorable response from the shareholder. As per the announcement the offer is scheduled to open for public on September 23 and will close on October 22, 1998. The companys equity base is Rs 23.70 crore.

Any number of companies have given non-disposal undertaking (shares in the company to which loan is extended will not be disposed off, till the dues of FIs are paid) to FIsand it does not require an open offer to be made. If, as a result of acquisition of Raasi Cement, ICL acquires 10 percent or more of Vishnu Cement, the open offer will have to be made for Vishnu Cement as well.