The Securities Appellate Tribunal on Friday directed Luxottica SPA of Italy to make an open offer to the shareholders of Rayban Sun Optics.

According to back of the envelope calculations, the open offer will have to be priced at Rs 103.33 per share, which is the average of the high and low in the six months preceding the cut-off date of April 28, 1999.

The company will also have to pay interest at the rate of 15 per cent per annum -- but this will be applicable to only shareholders who were holding a stake in the company on April 28, 1999, and who continue to be shareholders on the date of closure of the public offer.

The order said: "Interest at the rate of 15 per cent per annum shall be payable from August 27, 1999, to those persons who were holding shares of the target company (Rayban Sun Optics), eligible to participate in the public offer required to be made, taking April 28, 1999, as the referral date for making the public announcement and continue to be shareholders of the target company on the closure day of the public offer."

Luxottica has to make the public announcement for the open offer 45 days from Friday.

In 2001, Securities and Exchange Board of India had told Luxottica that it had violated the takeover code by not making an open offer for the minimum 20 per cent of the equity held by the shareholders of Rayban Sun Optics India after Luxottica purchased Rayban's global parent.