Aayush Kumar shares his views with The Economic Times
Our Partner, Aayush Kumar, recently shared his insights with The Economic Times on the market's reaction to Mahindra & Mahindra’s acquisition of SML Isuzu.
He discussed how takeover prices are determined under SEBI’s Takeover Regulations and emphasized the importance of understanding the prescribed methodologies for offer pricing, including benchmarks such as the highest negotiated price and volume-weighted average prices over specified periods.
"SEBI’s Takeover Regulations prescribe the methodology for determining the offer price in an open offer. In cases of direct or deemed direct acquisitions, the offer price is required to be the highest among the following benchmarks: the highest negotiated price specified in the trigger agreement; the volume-weighted average price (VWAP) paid or payable by the acquirer over 52 weeks preceding the open offer launch; the highest price paid by the acquirer during 26 weeks preceding the open offer launch; the 60-day VWAP preceding the open offer launch (in the case of frequently traded shares); or a fair valuation (for infrequently traded shares)" said Aayush.
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