South India Paper Mills open offer at ₹120: Oct 2026

What was announced

South India Paper Mills Ltd has disclosed receipt of a Draft Letter of Offer for a mandatory open offer following a takeover-related filing by Nandini Modi and Kirit Modi. The acquirers, along with seven persons acting in concert (PACs), are making an open offer to public shareholders at ₹120 per equity share. The offer size is up to 48,75,000 fully paid-up equity shares, representing 26% of the company’s voting share capital. The maximum consideration for the open offer is stated at ₹58.50 crore.

Who the acquirers are and what they filed

The disclosure references a Detailed Public Statement (DPS) made with BSE Limited in connection with the open offer. The DPS is dated August 25, 2026. As per the filing, the acquirers have stated they have the financial capacity to execute the transaction. The open offer is positioned as a mandatory offer under India’s takeover framework.

Offer price versus the market price on screen

The key economic term in the DPS is the offer price of ₹120 per share. Around the time of the update, the stock was shown at about ₹116, indicating the offer price sits above the displayed traded price in the provided snapshot. The company is listed as SIPAPER on the NSE and as 516108 on the BSE.

Timeline: DPS, identified date, and tender window

The tendering period for the open offer is scheduled to start on October 13, 2026, and close on October 27, 2026. The materials also mention an identified date of September 28, 2026, with the offer closing on October 27, 2026. The filing notes the tendering period spans 10 working days, with specific dates to be set out in the Letter of Offer.

What triggered the open offer: the underlying SPA

The open offer was triggered by a Share Purchase Agreement (SPA) signed on August 18, 2026. Under this underlying acquisition, 37,90,240 shares, representing 20.21% of the company, are being acquired from sellers. The SPA consideration is stated as ₹45.48 crore, at ₹120 per share, matching the open offer price.

Deal structure and regulatory framework

The mandatory offer is described as compliant with Regulations 3(1) and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The public announcement and related open-offer documentation were submitted to BSE. Indcap Advisors Pvt. Ltd. is named as the manager to the offer and has submitted a copy of the Draft Letter of Offer to BSE for public shareholders of South India Paper Mills Ltd.

What changes in shareholding if the offer is fully accepted

The disclosure includes pre-offer and post-offer shareholding metrics tied to the underlying SPA and the open offer. One section states the acquirers’ pre-offer holding as 19.17% and indicates that, upon full acceptance, the post-offer holding could rise to 65.59%. Another section states that upon full acceptance and completion of the SPA transaction, the combined holding of the acquirers and PACs will rise to 1,22,60,216 shares, representing 65.39% of the voting share capital. Both figures are presented in the provided materials.

Key numbers at a glance

Market impact and what investors typically watch in such cases

The announcement brought South India Paper Mills into focus because mandatory open offers can influence trading activity around the offer price and dates. For shareholders, the central decision is whether to tender shares at ₹120 during the offer window, subject to the final terms in the Letter of Offer. Investors also track whether the underlying SPA and the open offer complete as described, since the disclosures tie the post-transaction holding to both steps.

Why the event matters

This transaction is structured around a change in shareholding that crosses thresholds under SEBI’s takeover regulations, leading to the mandatory offer. The consistent pricing across the SPA and the open offer at ₹120 per share is a notable feature of the disclosed terms. If full acceptance occurs, the disclosed post-offer ownership would take the acquirers and PACs to roughly two-thirds of the voting share capital, based on the figures stated in the filings.

Conclusion

South India Paper Mills’ filings outline a mandatory open offer by Nandini Modi and Kirit Modi, along with PACs, to acquire up to 26% at ₹120 per share, with a maximum consideration of ₹58.50 crore. The tender period is scheduled for October 13 to October 27, 2026, following the August 18, 2026 SPA and the August 25, 2026 DPS. The next key document for shareholders is the final Letter of Offer, which will set out the detailed process and terms for tendering shares.