Pyramid Saimira surges 10% on open offer reports

Pyramid Saimira surges 10% on open offer reports

Mumbai: Media and entertainment house Pyramid Saimira on Monday surged as much as 10% on the domestic bourses on reports that the promoters would make an open offer to the shareholders for acquiring a further 20% stake.

The Securities and Exchange Board of India (Sebi) has directed Pyramid Saimira Theatre to make an open offer as one of the promoters has acquired more than 5% equity from the market in the year 2008, according to the media reports.

Shares of Pyramid Saimira surged 9.95% in the opening trade to hit its upper circuit of Rs82.90 on the Bombay Stock Exchange.

Similar movements were witnessed on the National Stock Exchange where the scrip surged to a high of Rs83, up 10% from Friday’s close. Over 29.35 lakh shares changed hands on both the exchanges.

Meanwhile, in a regulatory filing to the BSE the company said it has not received any communication from Sebi so far.

Under the existing regulatory rules of the country a promoter is allowed to acquire up to 5% equity every year. However, one of the promoters of Pyramid Saimira, P.S. Saminathan, has acquired more than this limit.

“The company has informed that P.S. Saminathan, promoter, who is also chairman and managing director, has also confirmed that he has not received any communication from SEBI in this regard," the filing added.