South India Paper Mills: Promoters Trigger 26% Open Offer at ₹120/Share

Offer Price: ₹120 per share.
Total Consideration: ₹58.50 crore.

Reader Takeaway: Investors gain an exit opportunity at ₹120/share, though past regulatory filing delays warrant cautious oversight.

What just happened

Nandini Modi and Kirit Modi, along with seven Persons Acting in Concert (PAC), have launched a mandatory open offer for South India Paper Mills. This move follows a share purchase agreement signed on August 18, 2026, which saw the acquirers purchase a 20.21% stake from previous shareholders. The open offer seeks to acquire up to 48,75,000 equity shares, representing 26% of the voting capital.

Why this matters

The open offer is a regulatory requirement following the significant change in shareholding. Upon completion, the promoters' total stake is expected to rise to 65.39%. To ensure execution, the acquirers have deposited ₹14.63 crore into an escrow account with ICICI Bank. Investors now have a clear window from October 13, 2026, to October 27, 2026, to tender their shares if they choose to exit.

Regulatory and Compliance

While the current offer follows standard SEBI (SAST) procedures, the company notes that the acquirers experienced delays in regulatory filings during the 2025-26 fiscal year. Additionally, South India Paper Mills was placed under the Short Term Additional Surveillance Measure (ASM) framework on August 27, 2026. There are no pending litigations reported against the target company or the acquirers at this stage.

What to track next

Shareholders intending to tender shares must ensure their holdings are free from liens and charges. All participation must occur through a registered stockbroker within the specified tendering window. The offer is not conditional on any minimum acceptance level, meaning the acquirers will purchase all validly tendered shares up to the 26% limit.