The price of the open offer by Emami has been raised for the shareholders of Zandu Pharmaceutical Works to Rs 15,000 a share from Rs 7,315 a share.  Emami is a very well known consumer products maker.

However, the new price is still very below the Zandu Share price. On the Bombay Stock Exchange, Zandu’s share price closed at Rs 16,728 and the analysts are assuming that Emami will still fail to buy new shareholders even at the new price.

Harsh V Agarwal, Emami Group director reported, “We have always kept the interests of the minority shareholders in mind and have decided to come up with a revised offer in the wake of prevailing market trends. This is an excellent opportunity for the shareholders to realize the best value for their shares.”

On the other hand, Zandu is preparing for a serious AGM due on 24th September since five nominees of the Parikh family are expecting themselves to be hired on the Zandu board.

Presently, independent directors are governing the Zandu board that includes corporate lawyer YP Trivedi, PP Vora, K Natarajan, SS Handa and AV Shah.   

Earlir on 7th June, the proposal to offer shares to the Parikhs on a preferential basis had been dropped by the mentioned board, after a legal notice from Emami followed.

The Company Law board was moved by the Parikh family against Emami as they said that the Sebi’s takeover code has been violated by Emami through its stake purchase.

During the month of June, Emami announce that it would make an open offer for 20% in Zandu Pharma, in line with Indian takeover rules. This happened after the company had raised its stake in the maker of Zandu balm to 27.51%.

The Indian takeover regulations instruct, “An acquirer must make an open offer for an additional 20% stake in the target firm when its holding touches 15%.”