HOSTILE TAKEOVERS IN INDIA

Abstract

This paper explores the dynamics of takeovers, emphasizing the distinction between friendly and hostile acquisitions, with a focus on the Indian corporate landscape. While hostile takeovers are prevalent globally, they remain rare in India due to dominant promoter shareholdings, stringent regulatory approvals, and provisions favoring promoters. The current favorable economic climate with rising share prices also limits hostile bids. However, potential economic downturns could create conditions ripe for hostile takeovers, including those by foreign entities, as lower stock prices present acquisition opportunities.