SEBI may insist on open offers in BPCL deal

As per the legal position evaluated by DIPAM, the acquirer of BPCL will have to make open offers to the minority shareholders of Petronet and IGL for the acquisition of 26% shares.

India’s capital markets regulator is unlikely to give exemption to the company acquiring BPCL from making mandatory open offers for Petronet LNG Limited and Indraprastha Gas – share purchases which will be countered by other promoters of the two firms such as GAIL to save from going private, officials said.

As per the legal position evaluated by the Department of Investment and Public Asset Management (DIPAM), the acquirer of BPCL will have to make open offers to the minority shareholders of Petronet and IGL for the acquisition of 26% shares.

To avoid such a scenario, an exemption request was made to the Securities and Exchange Board of India (SEBI).

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