How to participate in a takeover or spin-off on Zerodha

Tue, 12 May 2026 00:00:00 +0000

A takeover occurs when an entity (acquirer) gains effective control of a listed company by acquiring a substantial portion of its shares or voting rights. Under Indian law, this triggers the acquirer’s obligation to make an open offer to remaining public shareholders under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SAST Regulations). A spin-off is a form of corporate restructuring in which a company separates a subsidiary or division into an independent listed entity, distributing shares of the new company to existing shareholders.

How to tender shares in an open offer on Zerodha

Tue, 12 May 2026 00:00:00 +0000

An open offer is a mandatory or voluntary offer made by an acquirer (and persons acting in concert) to the public shareholders of a listed target company, to purchase a minimum of 26% of the total shares outstanding. Open offers arise primarily in the context of takeovers and are governed by the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SAST Regulations), commonly called the Takeover Code.

Unlike a buyback (where the target company purchases its own shares), an open offer is made by an external acquirer seeking control of the company. Public shareholders who choose to exit may tender their shares to the acquirer at the announced open offer price. Participation is voluntary for public shareholders: those who do not tender continue to hold shares in the company (now with the new controlling shareholder).

Takeover on WebNotes

How to participate in a takeover or spin-off on Zerodha

How to tender shares in an open offer on Zerodha