Below mentioned news report indicates reason for buyer freeze.The aim of this post is to be on the lookout for such news and undertake action in order to benefit from price increase.
Soma Tex founders make open offer at Rs 32 per share
Wednesday, 21 February , 2007, 11:01
Mumbai: The promoter group of Soma Textiles & Industries Ltd. on Wednesday made an open offer to buy 20 per cent of the company's equity capital at Rs 32 per share. The offer was being made after the group acquired a 11.2 per cent stake through open market purchase at an average price of Rs 28.06 a share on Feb. 19, the founders said in a public announcement.
With this, the founders had acquired a total of 14.53 per cent stake in the company during the current financial year, triggering a regulatory mandate for an open offer.
Under the rules of market regulator Securities and Exchange Board of India, substantial shareholders acquiring more than five per cent of share capital in a given year must come out with an open offer for at least 20 per cent more.
Founders now hold 33.7 per cent in Soma Textiles.
The open offer will begin on April 13 and close on May 2.
Shares closed at Rs 36.5 in the Mumbai market on wednesday.
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