Merchant Banking & Capital Market

Takeovers

Takeovers in listed companies in India are technically governed by SEBI (Substantial Acquisition of Shares and Takeover) Regulations 1997. The purpose of a Takeover is to gain management control of the Target Company. Plans of Horizontal Diversification, Elimination of Competition, Backward and Forward Integration are the motives behind any Takeover bid. The Taking-over Company buys the shares of the Target Company by making an offer to the existing shareholders at a specified price.

In takeover offers, a Merchant Banker has to be appointed to manage the acquisition of shares. The process starts with the Acquirer executing an MOU with us. The Due Diligence exercise is carried out in accordance with the relevant SEBI Rules/Regulations/Guidelines and the Public Announcement and offer document is prepared and submitted to SEBI for their observation. Our Team at D&A also undertakes preparation of the legal documentation connected with Takeover.