Gujarat advised shareholders not to take up Jindal’s 20c a share offer.

Its major shareholder, the Gujarat NRE group of companies with approximately 64% of its issued capital, has indicated that it does not accept the Jindal offer.

The offer represented a 5% premium to Gujarat’s closing share price of 19c on January 29, 2013 and a 15% premium to the volume weighted average share price over the previous three months from and including October 30, 2012, Jindal said in its bidders statement.

“The 20c cash offer allows Gujarat’s shareholders to realise full and fair value for their shares in a volatile equity market,” the company said.

Jindal was already a 19.48% shareholder of the company after Gujarat placed 100 million shares at $0.25 per share with Jindal, which also secured supply of coking coal with an offtake agreement last August.

New Delhi-based Jindal has an annual turnover of $US3.5 ($A3.35) billion and is part of the $US15 billion diversified OP Jindal Group.

It has committed investments exceeding $15-20 billion in the future and has several business initiatives running simultaneously across continents.

Jindal’s bid was to remain open until at least March 15, 2013 but it was extended to today.

Gujarat has appointed Ernst & Young Transaction Advisory Services as its corporate adviser and Steinepreis Paganin as its legal adviser.