South India Paper Mills open offer at ₹120: Key details

Stock in focus after takeover-related filing

South India Paper Mills Ltd came into focus after a takeover-related disclosure by Nandini Modi and Kirit Modi. The stock was cited at ₹118.35, up ₹2.25 (1.94%), as on 01 Sep, 2026 at 03:50. The trigger is a mandatory open offer process under India’s takeover rules, which typically follows an acquisition that crosses prescribed thresholds or results in a change of control. The filing discussed is a Detailed Public Statement (DPS) made with BSE Limited. The target company is listed on the NSE as SIPAPER and on the BSE as 516108. The sector classification mentioned is Paper & Paper Products, with another reference in the material to Paper & Forest Products. The core economic term is an offer price of ₹120 per equity share.

Detailed Public Statement: what was filed and when

The DPS is dated August 25, 2026, and it formalises the mandatory open offer for South India Paper Mills. According to the filing, the acquirers have stated they have the financial capacity to complete the transaction. The DPS confirms that the offer will be made at ₹120 per share, which is also the price used for the underlying share purchase agreement. The open offer is for up to 26% of the company’s voting share capital, which is a standard maximum size often seen in mandatory offers. The disclosure also indicates the process will involve persons acting in concert (PACs) alongside the primary acquirers. Indcap Advisors Private Limited is named as the Manager to the Open Offer.

The trigger: Share Purchase Agreement signed on August 18, 2026

The open offer was triggered by a Share Purchase Agreement (SPA) signed on August 18, 2026. Under this SPA, the acquirers agreed to purchase 37,90,240 equity shares, representing 20.21% of the voting share capital. The sellers are named as Harshad Natvarlal Modi and Rajul Harshad Modi. The consideration for this SPA is stated as ₹45.48 crore, at ₹120 per share. The material describes this as the underlying transaction that sets off the mandatory open offer requirements under SEBI’s takeover regulations.

Open offer terms: size, price, and maximum payout

The DPS states 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. If fully accepted, the maximum open-offer consideration is stated as ₹58.50 crore. The payment for the open offer is described as being made entirely in cash. The filing also notes that, taken together, the SPA consideration and the maximum open-offer consideration total roughly ₹103.98 crore (also cited as approximately ₹104 crore).

Persons acting in concert (PACs) named in the offer

Along with Nandini Modi and Kirit Modi, the open offer includes persons acting in concert (PACs) identified in the disclosure. The PACs named are Sachin Kirit Modi, Swapnil Kirit Modi, Riddhi Sachin Modi, Bhuvi Swapnil Modi, Rihaan Sachin Modi, and the entities Rigid Containers and Fortune Packaging. These disclosures matter because takeover regulations treat an acquirer group collectively when assessing control and compliance. The material also states that the transaction would result in a change of control. One cited line indicates that post-transaction ownership would be 39.39% with control, after the SPA and open offer.

Process and timelines: tendering window and e-voting dates

For public shareholders, the key operational detail is the tendering period for accepting the open offer. The disclosure states the tendering period will span 10 working days, but the specific dates are to be provided in the forthcoming Letter of Offer. Separately, the material cites a remote e-voting window starting on September 14, 2026 at 9:00 am and ending on September 16, 2026 at 5:00 pm. These dates are relevant for shareholder participation in related corporate actions, depending on what is put to vote. Investors are also advised in the material to track the DPS and the Letter of Offer for the finalised process schedule.

Regulatory framework cited in the disclosure

The open offer is stated to be compliant with Regulations 3(1) and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. In practical terms, these provisions are invoked when an acquisition crosses ownership thresholds or leads to control, requiring an open offer to provide an exit opportunity to public shareholders at a defined price. Here, the offer price is clearly stated at ₹120, and the maximum size is defined at 26% of voting capital. The DPS also explicitly states the acquirers’ financial capacity, a common element that supports confidence in settlement capability.

Key facts table

Market impact: what the numbers imply for shareholders

The headline term for public shareholders is a fixed offer price of ₹120 per share for up to 26% of voting capital, which creates a defined exit option subject to overall acceptance and process completion. The maximum cash outflow for the open offer is quantified at ₹58.50 crore, giving investors a clear ceiling on the offer’s size. Alongside it, the SPA value of ₹45.48 crore for a 20.21% stake indicates that the negotiated control transaction is being priced at the same level as the public offer. The combined transaction value, cited at roughly ₹104 crore, places the overall deal scale in context for a listed mid-to-small cap company in the paper segment. The stated change of control and the mention of post-transaction ownership at 39.39% with control also clarifies that the deal is not just a financial investment but a control-led acquisition.

Why this development matters for the paper sector and takeover activity

In takeover-led situations, the DPS and subsequent Letter of Offer are the core documents that outline price, size, funding confirmation, and timelines. Here, the disclosure is explicit on offer price, maximum consideration, the identity of PACs, and the trigger transaction. The fact that the open offer price matches the SPA price at ₹120 per share is also a key factual anchor for investors tracking valuation in control deals. With the target identified under the Paper & Paper Products segment, the transaction adds to the set of corporate control moves that can reshape ownership structures in manufacturing businesses. For the market, the next procedural milestone is the Letter of Offer, which will provide the definitive tendering dates for acceptance.

Conclusion

Nandini Modi and Kirit Modi, along with named PACs, have filed a DPS dated August 25, 2026 for a mandatory open offer in South India Paper Mills at ₹120 per share, covering up to 26% of voting capital. The offer follows an SPA signed on August 18, 2026 for 20.21% at ₹45.48 crore, with the open offer capped at ₹58.50 crore. The tendering window is stated to be 10 working days, with dates expected in the Letter of Offer, while the remote e-voting window is listed as Sep 14–16, 2026.