South India Paper Mills open offer at ₹120: DPS filed 2026

DPS filing confirms a mandatory open offer

Nandini Modi and Kirit Modi have filed a Detailed Public Statement (DPS) with BSE Limited for a mandatory open offer in South India Paper Mills. The DPS is dated August 25, 2026. It confirms an offer price of ₹120 per equity share. The filing also states that the acquirers have the financial capacity to execute the transaction. The open offer is for up to 26% of the company’s voting share capital. The target company is listed as NSE: SIPAPER and BSE: 516108 under the Paper & Paper Products sector. The disclosure is a key step in the open offer process, as timelines and tendering mechanics flow from the DPS and the subsequent Letter of Offer.

What triggered the open offer: the August 18 SPA

The open offer has been triggered by a Share Purchase Agreement (SPA) signed on August 18, 2026. Under the SPA, the acquirers agreed to purchase 37,90,240 equity shares, representing 20.21% of the voting share capital. The sellers are Harshad Natvarlal Modi and Rajul Harshad Modi. The SPA consideration is ₹45.48 crore at the same stated price of ₹120 per share. The SPA is the underlying transaction that results in a change in holding levels. After this SPA closes, the acquirers’ aggregate holding is proposed to increase materially even without any shares tendered in the open offer.

Open offer terms: price, size, and maximum outlay

The DPS states that the open offer is to acquire up to 48,75,000 additional equity shares from public shareholders. This represents 26% of the voting share capital. The offer price is ₹120 per share, matching the SPA price. The maximum consideration for the open offer is stated as ₹58.50 crore. The article also notes that, taken together, the SPA consideration and the maximum open-offer consideration total roughly ₹103.98 crore. These numbers frame the maximum cash outlay assuming full acceptance in the open offer.

Acquirers and persons acting in concert (PACs)

Along with Nandini Modi and Kirit Modi, the open offer includes persons acting in concert (PACs). The PACs named are Sachin Kirit Modi, Swapnil Kirit Modi, Riddhi Sachin Modi, Bhuvi Swapnil Modi, Rihaan Sachin Modi, and entities Rigid Containers and Fortune Packaging. The DPS and accompanying disclosures are intended to provide clarity on who is participating in the acquisition and how control may change. The official public announcement explicitly states that the acquirers and PACs will acquire control over South India Paper Mills after completion of the underlying transaction. It also states they will be classified as part of the promoter and promoter group.

Shareholding shift: current holding and post-SPA position

As per the provided details, the acquirers currently hold a combined stake of 19.17% in South India Paper Mills. Following completion of the underlying SPA, their aggregate holding will rise to 39.39%, excluding any shares acquired through the open offer. This post-SPA holding level is a key datapoint because it indicates the acquirers’ starting position before any public shareholder tenders. The open offer, if fully subscribed, could take the holding higher, but the article’s stated 39.39% figure is specifically described as excluding open offer acceptances.

Key process dates and what investors should track

The tendering period for shareholders to accept the open offer is stated to be 10 working days. However, the specific tendering dates are to be disclosed in the forthcoming Letter of Offer. Investors were advised to track the DPS for process timelines, with the DPS expected within five working days of the public announcement. Separately, the remote e-voting period is stated to commence on September 14, 2026 at 9:00 am and end on September 16, 2026 at 5:00 pm. These dates matter for shareholders who want to stay aligned with corporate and regulatory milestones. The disclosure also reinforces that the Letter of Offer will be the operative document for detailed schedules and acceptance procedures.

Company profile: operations and listing details

South India Paper Mills is described as a Karnataka-based paper manufacturer incorporated in 1959. Its registered office and manufacturing operations are located at Nanjangud, Karnataka. The company operates across paper and paper products, along with power operations. Its shares trade on the BSE under scrip code 516108, and it is also listed on the NSE as SIPAPER. These details provide context on the business and where the security is traded for market participants tracking the open offer.

Financial snapshot mentioned in the disclosure

South India Paper Mills reported a net profit of ₹4.98 crore for Q1FY27 (quarter ended June 30, 2026), as per the article, up 408% year-on-year. The corresponding quarter of the previous year recorded a profit of ₹0.98 crore. The article also cites profit figures of ₹14.74 crore for TTM, -₹9.64 crore for Mar 2025, and -₹13.43 crore for Mar 2024. It also mentions EPS (TTM) of 5.73, and that the company reported sales of 1,139.87, net income of 45.72, and EPS of 2.44 for the latest quarter, along with revenue per share of 200.81 (units not specified in the provided text). These numbers together indicate a recent improvement in quarterly profitability alongside a mixed trailing and historical profit record.

Summary table: transaction terms and key milestones

Market impact: what the filing changes for shareholders

The DPS makes the offer price and maximum acquisition size explicit, which helps investors evaluate tender decisions against market price movements. It also clarifies that the open offer is mandatory and linked to an SPA that shifts ownership and control. For public shareholders, the stated offer price of ₹120 becomes the reference point for participation. The disclosure that the acquirers and PACs will acquire control and join the promoter and promoter group is relevant for investors assessing governance and future control structure. The 10-working-day tendering period, once dated in the Letter of Offer, will define the window in which shareholders can tender shares. In parallel, the remote e-voting dates provide a specific near-term calendar item for shareholders tracking company resolutions and participation windows.

Why the event matters: control, compliance, and clarity

A DPS-backed open offer is a compliance-driven mechanism that formalises the terms, participants, and process after a control-triggering transaction. In this case, the SPA for 20.21% and the stated post-SPA holding of 39.39% underscore a meaningful change in the shareholder map. The open offer size of 26% is significant because it represents a large portion of the voting capital and is structured at a fixed price. The combined potential consideration of roughly ₹103.98 crore (SPA plus maximum open offer) frames the scale of the transaction. For the company, the disclosure comes alongside a reported recovery in quarterly profits, with Q1FY27 profit rising to ₹4.98 crore from ₹0.98 crore a year earlier, as stated in the provided text.

Conclusion

The Modi group’s DPS filing with BSE formalises the ₹120-per-share open offer to acquire up to 26% of South India Paper Mills, following the August 18, 2026 SPA for 20.21% at ₹45.48 crore. The next operational milestone for investors is the Letter of Offer, which will specify the 10-working-day tendering dates and acceptance process.