SEBI on March 25, 2022 has issued consultation Paper on Review of determination of Offer Price in case of disinvestment of PSU Companies. The paper seeks comments from the public on the proposal to relax certain provision with regard to determination of open offer price in case of divestment of Public Sector Undertaking companies (hereinafter referred to as“PSU”) by the Central Government and/or State Government. The Primary Market Advisory Committee has agreed with the following proposal:
- In case of disinvestment of PSU companies, the requirement of 60 days’ Volume weighted average market price based parameter for calculation of offer price, may be dispensed with.
- In case such PSU companies have stake in othercompany(s) and due to such disinvestment an indirect acquisition is triggered, the requirement of 60 days’ Volume weighted average market price based parameter for calculation of offer price for indirect acquisition, may also be dispensed with.
- The acquirer shall disclose upfront the negotiated price for both direct acquisition as well for indirect acquisition.
