South India Paper Mills Open Offer

Nandini and Kirit Modi are set to acquire a significant stake in South India Paper Mills Ltd, potentially taking control of the company.

Reader Takeaway: Control change imminent; public shareholders get exit at Rs 120.

What just happened

An open offer has been announced for South India Paper Mills Ltd by acquirers Nandini Modi and Kirit Modi, along with Persons Acting in Concert (PACs). This offer is to purchase up to 48,75,000 shares, representing 26% of the company's voting capital, at a price of Rs 120 per share.

The total value of this offer is approximately Rs 58.50 crore. The trigger for this open offer is a Share Purchase Agreement (SPA) dated August 18, 2026, where the acquirers agreed to buy 37,90,240 shares (20.21% stake) from Harshad Natvarlal Modi and Rajul Harshad Modi for Rs 45.48 crore.

Why this matters

This transaction signifies a change in control for South India Paper Mills. The acquirers, along with PACs, will become part of the promoter group. The offer provides an exit opportunity for public shareholders at a fixed price of Rs 120 per share. The acquirers have confirmed firm financial arrangements for the offer.

The backstory

Harshad Natvarlal Modi and Rajul Harshad Modi, the sellers in the underlying SPA, will no longer hold any shares in the company post-transaction. The acquirers and PACs intend to acquire control, but have stated no intention to delist the company's shares.

What changes now

Following the completion of the SPA and the open offer, Nandini and Kirit Modi, along with PACs, will assume control of South India Paper Mills. Existing sellers will exit their holdings.

Risks to watch

Investors should closely monitor corporate governance and the future strategic direction of the company under new management. The market price of the stock may react to the offer price.

Peer comparison

Information on comparable peer transactions or market positions is not provided in the filing.

Context metrics (time-bound)

• Offer Size: Up to 26% of voting capital (48,75,000 shares).
• Offer Price: Rs 120 per share.
• Total Offer Value: Up to Rs 58.50 crore.
• Underlying SPA Stake: 20.21% (37,90,240 shares).
• Underlying SPA Value: Rs 45.48 crore.

What to track next

Investors should watch for the Detailed Public Statement (DPS), which is expected within five working days of the public announcement. The DPS will outline the tender process timelines and further procedural details.