New Delhi, Feb 24 (IANS): Shareholders of Prime Focus including Reliance Media Works Financial Services Private Limited, which holds significant equity stake in Prime Focus have challenged the low valuation of Rs. 44.15 per share offered to the retail and public shareholders of Prime Focus under the open offer made by Namit Malhotra Family, the Promoters of Prime Focus.

The shareholders have filed appeal before Securities Appellate Tribunal (SAT) contesting unrealistically low open offer price and seeking appointment of an independent valuer by SEBI.

Open offer to the shareholders got triggered as Credit Suisse entered into an agreement with Namit Malhotra Family to sell the shares acquired upon invocation of pledge.

As the Open Offer has already opened on February 23, 2020, looking at the extreme urgency in the matter, on a writ petition filed by the shareholders, Bombay High Court by its order dated February 23, 2021 has directed SAT to hear the matter immediately.

SAT is scheduled to hear the matter today, outcome of the said proceedings may have material impact on the open offer price offered to the shareholders.

Surprisingly, there is no disclosure of the above litigation to the shareholders of Prime Focus in the letter of offer or public announcement.

Fair Valuation by an independent valuer appointed by SEBI will benefit thousands of small and retail shareholders of Prime Focus.