The thread is only dedicated to the Corporate happenings taking place in Companies. Since it is tough for all to track all the companies , collectively this thread may help as a common source to discuss the latest happenings like Promoter Purchase , Promoter Sell , Buybacks taking place in companies.
These details may help to dig deeper and i believe interesting things may come up. This thread should only be used to inform of the corporate actions while company fundamental details and reasons Behind such Sale / Purchase should be discussed in respective company thread.
Below are the business i track where some corporate actions is taking place.
Greaves Cotton
Promoters have bought 17.5 lakh shares (0.72% in last 3-4 months)
Jindal Stainless Ltd
Promoters have bought 6.6 Lakh shares (0.14% in last 2 Months)
Aarti Industries
Promoter sold 0.1% Shares in last 1 Month.
Buybacks where promoters did not participate
Thyrocare has completed the buyback at Rs 670 per share (Current Price : Rs 540 per share)
Oriental Carbon is buying back from Open Market (Current Price: 1150)
Disc: If the thread does not seem to be of use or violate the forum rules or if there exist any other thread for the similar topic , moderators are free to delete this thread…
Personally i think that tracking these corporate developments can help in little ways to dig deeper.
I was looking for such thread but did not find which is why started the thread.
Please track corporate actions in the respective company threads. Please use this thread only for informing about a particular corp action. That is, the specific discussion on a corp action should take place on the respective company thread.
I have a database of corporate actions that updates daily as I use it for adjusting prices. I can make it available on phreakonomics.in if you like. It is quite useful information when clubbed with a lot of other information. On its own it’s quite useless.
In a bull market or in a cyclical earnings peak, there are lots of splits and bonuses and in a sideways/bear market there is a lot of what I like to call “cheap signaling” in terms of buybacks or open market purchases. It is important to analyse the incremental skin in the game when these happen. If other negative factors like inclement market weather, corporate governance issues or sectoral headwinds exist, this kind of cheap signaling doesn’t do much. There are very interesting cases that come to attention early though, like mangalam organics but these are very few and far between and require a lot of manual analysis to profit from.
The purpose of this thread is not to discuss any company specific details even if no thread exist for any company. It is only for the purpose of highlighting Corporate Actions so that one can dig deeper for more insights into respective company thread or initiate a new thread if no thread exist.
Bonuses or splits have no value and thus should be avoided here.
Regarding promoter Purchase , Promoter Sell or any buybacks (especially where promoters do not participate) , no matter the market is bull or bear , does help and can bring interesting picture as promoters better know the prospects of the business. It is on individual to know the reasons behind such Sale or Purchase and those details should be discussed in the respective company thread.
Also it is to be made sure that who ever posts any such details , it should not be on a daily basis. It can be over a period of 2-4 months and should be of some significant quantity like in Greaves Cotton.
Byke Hospitality :
One of the promoter has acquired 4.83 Lakh Shares (1.2%) of the company in between Dec 2017 to March 2018 at an average price of around Rs 170. The shares started falling from April 2018 and currently are at Rs 40.
Promoters buying from the market does not necessarily means good times for the Company.
An Investor should connect a lot of dots and such purchases should not be seen in Isolation.
There were lot of issues highlighted in the respective thread of the company. One can visit the entire thread for a better understanding. Byke Hospitality
YES, your point is very well taken … I have observed it many times that when promoters are buying it may (also) be to provide an “exit” to some entities (likely operator associated entities, whatever its name may be i.e. an individual or corporate entity) who have invested in the company… but that we came to know ONLY after some time-lag so practically such events cannot be taken advantage of by most lay investors…
McLeod Russel is the very latest example of Company Buyback, I have observed… i.e. after buy back, the share is continuously falling in the price… so the precise modus operandi of the Promoter+Operator are rather difficult to analyze from the point of view “to benefit from that” …
The message is: what ever become public, has little value for ALL the lay investors…
But you can do your own research, buy good company in SIP manner and HOLD for next 10 to 20 years… you can really make very good money… time frame of less than 10 year is relatively less profitable… SIT-TIGHT on your holding and enjoy the long - very long term ride !!!
Srikalahasti Pipes : Promoter group companies are buying constantly in last 2 Months. They have bought close to 3.32% from Market in 2 Months !
G K & Sons Pvt Ltd : 0.46% to 1.3%
Uttam Commercial Company Ltd : 0.5% to 0.87%
G.K.INVESTMENTS LIMITED : 0.58% to 1.79%
Murari Investment & Trading Company Ltd : 1.13% to 2.03% https://www.bseindia.com/stock-share-price/disclosures/insider-trading-2015/513605/
Panama Petrochem :
Small Cap (MCap : 352 Cr)
Promoters have increased their stake by 1.7% in last 2 Months.
March 19 : 69%
Sept 19 : 70.5
Dec 19 would be around : 72.2
Fundamentals and other issues must be discussed in the respective company thread.
Shrikalahasti Pipes :
Mcap :775 Cr
Promoters Holding
Promoters have bought 0.7% in last 1 month.
Dec 2018 : 44%
March 2019 : 47.67
Sept 2019 : 47.83
December would be around : 48.5
Disc: Have a very small exposure in both the names.
Promoter tried to acquire 89% of total equity using Preferential allotment (in exchange of loan given by him to company) followed by an open offer of 26% stake.
From open offer of 26% stake he was able to get only 1.24% (5 L shares) .
Promoter shareholding stands at 64% (after prefrential and open offer transactions) which was 35-36% earlier.
Disclosure : Holding with written off quantity but trying to get an experience
Sorry for being a noob. What is the best way to track corporate actions, especially buybacks and spin offs? Is daily reading of the corporate actions section on the BSE website the only option?
My experience with buybacks has not been positive. So just wanted to request you to tread with caution, especially if company doesn’t otherwise have a good reputation.
Here is Buffet’s view on buyback from his 2022 letter to shareholder:
A very minor gain in per-share intrinsic value took place in 2022 through Berkshire share repurchases as well as similar moves at Apple and American Express, both significant investees of ours. At Berkshire, we directly increased your interest in our unique collection of businesses by repurchasing 1.2% of the company’s outstanding shares. At Apple and Amex, repurchases increased Berkshire’s ownership a bit without any cost to us.
The math isn’t complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices. Just as surely, when a company overpays for repurchases, the continuing shareholders lose. At such times, gains flow only to the selling shareholders and to the friendly, but expensive, investment banker who recommended the foolish purchases.
Gains from value-accretive repurchases, it should be emphasized, benefit all owners – in every respect. Imagine, if you will, three fully-informed shareholders of a local auto dealership, one of whom manages the business. Imagine, further, that one of the passive owners wishes to sell his interest back to the company at a price attractive to the two continuing shareholders. When completed, has this transaction harmed anyone? Is the manager somehow favored over the continuing passive owners? Has the public been hurt?
When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive).
Here is a link to an article on exiting investors being unhappy over their shares not fetching maximum buyback price in an open offer.
I wonder if SEBI is really doing away with open offer purchases. Isn’t it only benefiting the exiting shareholders? Buybacks aren’t only to reward the exiting shareholders. When a company’s share prices are for some temporary reason, a company can increase the value of ownership of continuing shareholders by buying the shares from the open market at discounted prices. This increases the ownership of the continuing shareholders in the company. Buyback tax and removal of open offers removes this option from the table for creating value for the shareholders who choose to remain shareholders of the company or maintain their ownership in the company.
Buyback tax should be applicable only on Tender offers as they are most often used for “rewarding” exiting shareholders at the expense of continuing shareholders. Also perhaps a restriction could be added on open market purchases where it’s only allowed if the shares are trading at say a 52 week low.
I observed that actual success ratio is somewhere of 2-6 times than predicated by the model.
As per it L&T BB acceptence will not be more than 10%-12%.
Disc: This is work in progress. This won’t give you exact idea but you can able to somewhat predict. WIP hence will add more in coming days and would like if others join.
Innovasynth Investment looks like a good candidate for corporate action - Backdoor entry with Raheja holding 36% in listed holding . The associate entity is in profit , there recent move of disclosure of associate company profit and management change is a good sign
