Institutions will make good

The AV Birla Group company Grasim Ltd¹s open offer for 30 per cent of Ultra Tech CemCo, the demerged cement business of Larsen & Toubro, is likely to sail through with the financial institutions (FIs) having agreed to make good any shortfall in retail participation. According to top FI sources, all the financial institutions will together tender their shareholding in the demerged cement company to the extent of the shortfall on the last day of the offer, ie, June 21.  Sources said that the amount of participation in the open offer till June 19 stands at around 10 per cent of CemCo¹s equity capital.  The open offer, being for 30 per cent of the cement company, will in all probability ensure that the entire retail participation would be accepted.  The shortfall, if any, would be made good by the FIs. The extent of acceptance of each FI¹s shareholding in the offer will be proportional to their respective shareholding in CemCo.