SME Times News Bureau | 25 Feb, 2021
The shares of Prime Focus hit the roof on Thursday to close 20 per cent higher at Rs 62 with huge volumes.
Market
players expect SEBI to revise the open offer price at fair value. The
Securities Appellate Tribunal (SAT) is likely to appoint an independent
valuer to arrive at the fair value of Prime Focus shares.
The
fair value is considered to be Rs 115 per share � a whopping 260 per
cent higher than the current open offer price of Rs 44 offered by the
promoters. At fair value of Rs 115, Prime Focus open offer size will
increase to Rs 900 crore from the current size of only Rs 340 crore.
Fair
valuation by an independent valuer appointed by SEBI will benefit
thousands of small and retail shareholders of Prime Focus.
Prime
Focus shares have rallied over 40 per cent since the announcement of
open offer recently. Shareholders of Prime Focus, including Reliance
Media Works Financial Services Private Limited, which holds significant
equity stake in Prime Focus, had recently challenged the price of the
open offer made by the promoters, the Namit Malhotra family.
The
shareholders have filed an appeal before the SAT, challenging the very
depressed offer price of Rs 44. They have also sought the appointment of
an independent valuer by SEBI and a stay on the open offer till fair
valuation of Prime Focus shares is obtained.
The open offer to
the shareholders got triggered as the Credit Suisse entered into an
agreement with the Namit Malhotra family to sell the shares acquired
upon invocation of pledge.
