Following the Securities Appellate Tribunal directive, Kishore R Chhabria, Madanlal D Chhabria and associates have made an open offer to shareholders of Herbertsons Ltd to acquire additional 20 per cent stake at Rs 90.50 per share plus interest.

The offer for 19,04,465 shares of the company would open on October three and close on November one, 2003, Lazard India Ltd, manager to the offer, said on Thursday.

Personally, the Chhabrias do not hold any stake in the company, while their associates -- Veneer Investment & Finance Ltd, Algid Investment & Finance Ltd and IMFA Holdings Pvt Ltd -- hold 49.07 per cent of the paid-up capital.

The last date for making a competitive bid is September 11.

On August 1 last, setting aside the Sebi's order, SAT had ruled that Chhabria's should make an open offer with October 27, 1994 as a reference date to calculate the offer price and also pay 15 per cent interest from February 24, 1995 till the date of actual payment of consideration for shares.

In February 2002, Sebi had asked Chhabria's to divest their stake in excess of 10 per cent in the market.

SAT, in a separate order, had also reversed Sebi's order asking UB Group chairman Vijay Mallya to divest his holding in excess of 21.38 per cent stake in the company through offer.

On August 5, Mallya had claimed he was negotiating with Kishore to buy out his entire holding in Herbertsons.

Mallya has already filed a petition with SAT to stop him from making an open offer. It is slated to come up for hearing on August 25.