KOLKATA: The shares of Orissa Sponge Iron & Steel Ltd (OSISL) closed at Rs 362 for two consecutive days, which is just above the open offer price of Rs 360 Bhushan Energy Ltd and PACS (person action in concert). Only 3,318 shares changed hands on Friday.
Bhushan Energy, a subsidiary of Bhushan Steel Ltd, has updated a draft Letter of Offer regarding an open offer for 20 per cent of the diluted capital of loss-making OSISL.
IDFC Capital Ltd, Manager to the open offer, said the offer will open on May 3 and close on May 22. The open offer is in reference to a public announcement made on February 28, 2009. The offer was delayed due to interim injunction by the Orissa High Court.
Mr Neeraj Singal-led Bhushan Energy said the current offer is now being made in accordance with the order of the Supreme Court of March 26 on an interim application relating to non-conversion of 35 lakh warrants.
Mr Chief Justice S.H. Kapadia of the Supreme Court in July last year had dismissed a petition from Bhusan Energy to direct OSISL to convert the warrants. “The related matters are still sub-judice,” said Mr Nitin Johari, CFO of Bhushan Steel.
The Bhushan group is engaged in a battle with promoters of OSISL. The Delhi-based Monnet Ispat group backed the promoters against the bids from two rival factions of Bhushan group.
Market sources said any competitive bid from two other strategic investors may come to blunt the Bhushan Energy’s aggressive offer. Industrial Promotion and Investment Corporation Orissa holds 5.39 per cent stake in the company, while Monnet Ispat and Mr P.K. Mohanty-led promoter group jointly hold around 60 per cent stake. Bhusan Energy in its own name has over 13 per cent.