Legislature is Epitomized by an Unproductive Parliament
Executive Power is Controlled by Politicians
Judiciary is Outdated and Backlogged
Media is Biassed and has no Freedom of Speech
While the Four Voices of democracy are Amoral
A '5th VOICE' is born. Voice By The People, For The People.
In this fast growing industry, big companies try to give boost to their growth by increasing their market share and by expanding as much as possible. Recently, Larsen and Toubro (L&T) entered into a deal with V.G. Siddhartha, the founder of Café Coffee Day (CCD) the coffee chain along with his two Café Coffee Day affiliate firms in Mindtree to buy their entire share of 20.32 percent at Rs. 981 per share which he had been accumulating for over a decade now. He made a whooping profit of close to Rs 2858 crores. It was followed by an open public offer to buy the remaining 31 percent required shares by L&T so as to gain minimum 51 percent shares in the company.
The compulsory public offer trigger threshold is 25 percent which means that if a firm already owns 25 percent stake in a company or is at the verge to reach the limit then only they have to compulsorily make a public offer. L&T although owing a lesser stake decided to make a public offer for the interest of the small shareholders. Not only this, Section 6(1) of the SEBI Takeover code also prevented L&T from making any sort of voluntary public offer.
The question which comes to mind is that should the large shareholders of the company enjoy the fruit of such lucrative offers. Had the offer been made to the public at this rate of Rs 981 per share various shareholders have been benefitted at large rather that this single shareholder. Regulations should be made from the interest of small shareholders so that the benefit at large does not go to the big shareholders involved in the company.
Copyright Kalyan Krishna MediaZ Private Limited. All rights reserved. Unless otherwise indicated, all materials on these pages are copyrighted by Kalyan Krishna MediaZ Private Limited. All rights reserved. No part of these pages, either text or image may be used for any purpose. By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy and Content Policies.
