JM Financial Limited has reported a significant response to the open offer for Aavas Financiers Limited, with 85.86% of the total offer size already tendered. The offer, launched by Aquilo House Pte. Ltd. in collaboration with CVC Capital Partners and other entities acting as Persons Acting in Concert (PACs), aims to acquire 20,739,711 fully paid-up equity shares of Aavas Financiers.

As per the latest disclosure, 17,807,867 equity shares have been deposited in the Open Offer Escrow Demat Account, held with Ventura Securities Limited. The depository participant identification number (IN303116) and client identification number (15146112) confirm the transaction details. However, it is important to note that these tendered shares are subject to validation and verification. The acceptance of these shares will be finalized in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SEBI SAST Regulations).

Breakdown of the Open Offer

The acquisition of Aavas Financiers by Aquilo House Pte. Ltd. and its PACs is a strategic move in the financial sector. The key entities involved in this acquisition include:

• CVC Capital Partners Asia VI (A) L.P.
• CVC Capital Partners Investment Asia VI L.P.
• CVC Capital Partners Asia VI (B) SCSp
• Aquilo TopCo Pte. Ltd.
• Aquilo Universe Pte. Ltd.
• CVC Capital Partners Asia VI Associates (A) L.P.
• CVC Capital Partners Asia VI (B) Associates SCSp
• Aquilo Co-Investment L.P.
• Aquilo Midco Pte. Ltd.

These entities have come together to facilitate the acquisition of 26% of the Expanded Voting Share Capital of Aavas Financiers, marking a major development in the financial market.

Validation Process Under SEBI Regulations

The SEBI SAST Regulations dictate the process of verifying and validating the equity shares tendered. While 85.86% of the offer size has already been tendered, the final acceptance number may differ after due diligence. The Letter of Offer (LoF) issued on February 11, 2025, outlines the guidelines for accepting valid shares, ensuring compliance with regulatory norms.

The public shareholders who have tendered their shares must submit a complete set of documents for the shares to be considered validly tendered. Only then will the acquirer and PACs accept them in the open offer.

Market Implications and Shareholder Interest

This open offer is a crucial event for Aavas Financiers and its shareholders. The high response rate of 85.86% indicates strong investor participation and confidence in the transaction. Market experts believe that the acquisition could influence Aavas Financiers’ stock performance, affecting its valuation in the stock market.

JM Financial, in its role as the Manager to the Open Offer, has emphasized that the final share acceptance will depend on regulatory approvals and compliance with SEBI’s guidelines.

Next Steps in the Acquisition Process

1. Verification of Tendered Shares – All 17.8 million shares tendered in the Open Offer Escrow Demat Account will undergo validation.
2. Final Acceptance and Regulatory Compliance – SEBI norms will determine the final number of shares accepted in the open offer.
3. Impact on Aavas Financiers’ Future – The acquisition could bring strategic changes, impacting business growth, stock prices, and investor confidence.

Conclusion

The JM Financial Open Offer for Aavas Financiers has seen a strong response, with 85.86% of the offered shares already tendered. The final acceptance of these shares will be determined after regulatory checks, ensuring compliance with SEBI SAST Regulations. Investors and shareholders are advised to stay informed about the latest developments in this acquisition as the process unfolds.