Yatra Online advised shareholders to reject a tender offer from Magna Holdings to acquire up to 20 million shares for $1.10 in cash.

Yatra's board unanimously rejected the offer, the Indian travel company said Tuesday, saying the proposal's price "substantially undervalues" its business. The offer to control up to around 31% of the company's outstanding shares should also merit a control premium, Yatra said, adding that Magna has presented no strategic plan for the business.

In fact, Magna's very identity is unclear, as well as its ability to finance its tender offer, Yatra said. It said the entity declined to share financial statements, details of committed financing, or evidence of available funds.

"Magna has disclosed nothing to shareholders or the company about what Magna is and what persons or entities control it," Yatra said.

Magna has also subjected its proposal to many conditions that jeopardize whether the tender offer would ever be carried out, the company added.

Yatra also said that the tax provisions of Magna's offer mean that tendering shareholders could have their proceeds taxed at the maximum applicable rate under Indian law, potentially meaning they would only receive around 63 cents per share after tax.