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New Delhi, July 19 (PTI)The proposed revision in the takeover norms is likely to help investors to increase their shareholding in nearly 100 BSE firms in which their individual stake is below the present open offer trigger of 15 per cent. According to an analysis by SMC Capitals, among the BSE 500 companies, there are 98 companies with at least a single public shareholder holding between 10 and 14.99 per cent of total share capital of these firms. The Sebi takeover panel today proposed that an entity buying 25 per cent stake in a company should be required to make an open offer to the rest of the shareholders, compared to the 15 per cent trigger point for an open offer at present. Experts say this proposal of revision of threshold limit, can come as a blessing and fresh relief to investors as they will be able to increase their stake to 25 per cent. "For such investors, this upward revision of takeover threshold limit can give a huge legroom to increase their holdings to 25 per cent without a requirement of open offer," SMC Capital equity head Jagannadham Thunuguntla said in a report. For instance, the diversified ITC currently holds 14.98 per cent in Oberoi Group holding company EIH to avoid the open offer requirements. If the revised guidelines become applicable, ITC will have the option to increase its holding to 25 per cent through open market purchases, which can result into a fresh bounce in the stock of EIH, the report states. Among the BSE 500 companies, there are around 11 firms with a single shareholder entity holding between 14 and 14.98 per cent of their equity capital. For instance, Cairn India has Petronas as an investor holding 14.94 per cent, Binani Cement has JP Morgan holding 14.91 per cent in it, while Indiabulls Securities has HSBC Global holding 14.84 per cent, according to the report. Other such companies include Infotech Enterprises (investor is General Atlantic with 14.76 per cent holding), Amtek India (investor is Warburg Pincus with 14.64 per cent holding), Allcargo Global (investor is Blackstone with 14.63 per cent holding).
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