Ghanshyam Hansrajani has launched a mandatory open offer to acquire a 26% stake in Mayur Leather Products at ₹27.92 per share following a share purchase agreement. This move signals a change in control and management for the company. While the acquirer has secured the full consideration in an escrow account, investors should note that the firm currently faces significant challenges, including zero operational revenue and long-standing legal issues with creditors.
Mayur Leather Products Open Offer: Management Change Initiated
Offer Price: ₹27.92 per share | Offer Size: 12,57,048 Equity Shares (26%)
Reader Takeaway: New management enters, but company faces zero revenue, accumulated losses, and ongoing NPA and DRT legal disputes.
What just happened
Mr. Ghanshyam Hansrajani has entered into a Share Purchase Agreement (SPA) to acquire a 26.50% promoter stake in Mayur Leather Products Ltd. This transaction has triggered a mandatory open offer for an additional 26% of the company's equity and voting capital at an offer price of ₹27.92 per share. The tendering period for public shareholders is scheduled from November 9, 2026, to November 23, 2026.
Why this matters
The acquisition marks a complete change in control and management. Mr. Hansrajani intends to take over as the new promoter. To ensure the viability of the offer, the acquirer has deposited the full potential consideration of ₹3.51 crore into an escrow account with Kotak Mahindra Bank.
The backstory and Risks
Mayur Leather Products is currently in a state of financial distress. As of March 31, 2026, the company reported accumulated losses of ₹616.41 lakhs. Most concerningly, the company has generated no revenue from operations over the last two fiscal years (FY 2024-26). Statutory auditors have flagged material uncertainties regarding the company's ability to continue as a going concern. Furthermore, the company's debt with Canara Bank was classified as an NPA in February 2023, and properties have been subject to auction and ongoing Debt Recovery Tribunal (DRT) litigation.
Context and Regulatory Status
While the acquirer has stated there is no intention to delist the company from the BSE, the stock remains under ESM Stage 1. Historically, the company’s shares have been suspended on the Calcutta Stock Exchange since 1999. The new promoter brings experience in banking and real estate, but lacks direct background in the leather industry.
What to track next
Shareholders should closely monitor the Draft Letter of Offer for specific turnaround plans under the new management and assess the progress of the sub-judice matters at the DRT.