Religare Enterprises founders Malvinder Singh and Shivinder Singh on Wednesday made an open offer to the company shareholders at Rs 457 a share, which will increase their stake further by 20 per cent.
Under the offer the Singh brothers propose to acquire over 2.79 crore shares for the 20 per cent stake in the financial services provider.
On its successful completion, their stake in the company would go up to 85.13 per cent. The offer opens on October 13 and would close on November 1, 2010, Religare said in a filing to the Bombay Stock Exchange.
The promoters would shell out about Rs 1,280 crore (Rs 12.8 billion) for hiking their stake in the company.
On Tuesday, the promoters had said they would infuse Rs 857 crore (Rs 8.6 billion) in the company by way of fresh share issue, preferential allotment and warrant conversion.
Following this their in the company would increase by 8.03 per cent to 65.79 per cent.
Under the current regulatory norms a promoter has to make an open offer if his/her holdings increase the 5 per cent threshold a year.
The successful completion of open offer and the buying of 8 per cent stake would take Singh Brothers' total holding in the company to 85.13 per cent.
The current listing norm necessitate that a company maintain a minimum of 25 per cent of public holding.
Though promoters' holding in Religare would cross 75 per cent level this year, the company has the option of bringing it down to the permissible level in the next three years.
