Aar Shyam Open Offer: ₹15 Bid for 26% Stake in 2026

Open offer follows control transaction

A mandatory open offer has been announced for Aar Shyam India Investment Company Limited, now referred to in disclosures as Avudari Engineering Limited. The offer has been made by Radha Krishna Avudari, Sudha Rani Avudari and Nagabhyru Srikanth, collectively described as the acquirers. They propose to purchase up to 58,43,327 fully paid-up equity shares from public shareholders. The proposed purchase represents 26% of the company's emerging paid-up equity share capital. The offer price is ₹15 per share and payment will be made in cash.

Maximum offer value is ₹8.76 crore

At the stated price and maximum number of shares, the open offer consideration works out to ₹8,76,49,905, or about ₹8.76 crore. The disclosed offer is not an automatic purchase of all public shares, as acceptances are limited to the specified 58,43,327 shares. Shareholders who tender shares will be covered by the offer process and settlement mechanisms set out in the Letter of Offer. The filing also details the financial arrangements, risk factors and procedures for tendering and settlement.

SEBI takeover regulations trigger the process

The transaction has been disclosed under Regulation 3(1) and Regulation 4 of the SEBI Substantial Acquisition of Shares and Takeovers Regulations, 2011. Regulation 3(1) concerns acquisitions that cross prescribed voting-right thresholds. Regulation 4 applies where an acquisition results in a change in control of a listed company. The open offer is linked to a share purchase agreement and a proposed preferential allotment, which together alter the company's ownership structure.

SPA transfers shares from outgoing promoter

The disclosed share purchase agreement is dated August 21, 2026. Under the agreement, the incoming acquirers are purchasing 12,16,068 equity shares from Guruomega Private Limited, identified as the outgoing promoter. This block represents 40.54% of the existing capital, according to the disclosure. The agreed price under the SPA is ₹13.60 per share. The open-offer price of ₹15 per share is therefore higher than the disclosed SPA price.

Preferential allotment expands the capital base

The company also proposed a preferential allotment of 1,94,74,333 equity shares at ₹15 per share. This proposed issue is central to the use of the term “emerging paid-up equity share capital” in the offer documents. A preferential issue increases the number of outstanding shares and can materially change percentage ownership for existing shareholders. The board-authorised allotment and the SPA were cited as the triggers connected with the mandatory offer.

Acquirer holdings increased on October 23

Nagabhyru Srikanth, acting for himself and persons acting in concert Radha Krishna Avudari and Sudha Rani Avudari, acquired 7,27,050 equity shares through a preferential allotment on October 23, 2026. The acquisition represented 3.24% of the total share capital and diluted share capital. Following that allotment, the group held 1,44,76,429 equity shares, equivalent to 64.60% of total diluted share capital. These figures show that the acquirer group had already obtained a controlling position before considering any shares accepted in the open offer.

Separate PAC acquisition was also disclosed

Jhansi Sanivarapu and persons acting in concert separately acquired 12,00,000 equity shares through a preferential allotment on October 23, 2026. The acquisition represented 5.36% of total capital. Their aggregate holding after the transaction stood at 13,45,000 shares, or 6.00% of total diluted capital. This disclosure was also made under the SEBI takeover regulations.

Key transaction figures

Tendering period runs through October 30

The disclosed tendering period for the open offer began on October 16, 2026, and closes on October 30, 2026. The Letter of Offer is dated October 12, 2026, while the announcement of the offer for up to 58,43,327 shares was reported on October 15. Investors considering participation need to rely on the formal offer documentation for eligibility, tendering instructions and settlement terms. The offer will be settled in cash at the disclosed price of ₹15 per share.

What the transaction means for shareholders

The transaction combines a promoter stake purchase, a large preferential allotment and an open offer to public shareholders. For investors, the important reference points are the ₹15 open-offer price, the 26% maximum acceptance size and the enlarged capital base following the preferential issue. The disclosures state that, assuming full acceptance of the offer, the acquirers are expected to hold 95.82% of the paid-up capital. The immediate next event is the close of the tendering period on October 30, 2026, followed by the offer's settlement process under the stated SEBI framework.