Sebi chairman GN Bajpai on Friday confirmed that the regulator is examining a petition by the IGF seeking a stay on Grasim Industries’ open offer for L&T Ltd. “We have received a representation from IGF and will not delay any action on this issue,” Bajpai told reporters on the sidelines of a function organised by the Bombay Management Association (BMA) in Mumbai on Friday. L&T top brass to discuss offer MUMBAI: The top brass of L&T will discuss the open offer made by Grasim Industries for L&T’s 20 per cent equity, with FIs prior to its board meeting on October 29. The board meet would dwell on the open offer issue and may also discuss the issuance of a guidance to investors on whether to participate in the offer”, L&T deputy managing director, A Ramakrishna, said on Friday. Heads of FIs met last night in Mumbai and decided that FIs will not participate in the open offer for L&T made by Grasim. FIs stated that the price of Rs 190 was too low as against Rs 306.60 paid to RIL, which sold its 10 per cent stake to Grasim in November 2001. Bajpai said: “We have never delayed any matter which involves the interest of the investors and we will not delay any decision this time too.” Sebi is already conducting an enquiry into charges of insider trading in L&T stock, when Grasim Industries purchased over 10 per cent stake from RIL. Earlier on Monday, a delegation led by BJP MP Kirit Somaiya and its office bearers, Vipul Mody and Bharat Kotecha, met Sebi chairman and demanded that the open offer made by Grasim Industries should be stayed by the regulator till the earlier investigations in the case are completed. Bajpai had also assured IGF president Somaiya that he will ask the concerned department to look into the feasibility of staying the open offer when the investigation is on against the company involved. IGF has protested on the open offer made by Grasim for buying another 20 per cent stake from the remaining shareholders of L&T, stating that it was an “investor-unfriendly” move. Earlier this week, AV Birla group’s flagship company Grasim Industries had made an open offer to acquire an additional 20 per cent stake in L&T at Rs 190 per share, while it paid Rs 306.50 per share to RIL when it picked up over 10 per cent stake in cement and engineering company in November 2001.
