Hi,
This may be naive question.
Can some one please explain how to participate in Buy back scenario. Once we have shares in our Demat account, how to submit shares to buy back? Thanks in Advance.
Thanks Prasanna for giving the explanation a shot! This looks good for a decent return.
Sridhar: Today is the record date. So company will get in touch with the shareholders who hold the shares as of today asking them to participate in the next few weeks. On hearing from them you can select the relevant option of participating. I presume there will be a form to fill specifying no of shares etc.
disc: invested as special situation
Is there any news on the buy back? Has anyone received any communication from the company?
The company has today filed the new shareholding pattern as of March 14. And guess what, the retail part has doubled from the Dec 13 levels! So guess a lot of people are trying to arbitrage here. And it means we need to reduce our expectation of share acceptance percentage. My guess is 30-35%
anybody heard frm them on the process/dates of surrender?
The ratio will be around 50-55%. Sell the remaining 40%-45% right away. You will still be eligible for entire 50-55%.
It will take another 2 months for entire process to get complete.
Please check before selling anything right away. Usually in buybacks, if the acceptance ration is 50%, then only 50% of what you offer for buy back will be accepted n the balance will be returned to your d’mat a/c.
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This is different from a open offer. This is a buy back. And the ratio for which will be decided as per the shareholding of record date.
The ratio will be around 50-55%. Sell the remaining 40%-45% right away. You will still be eligible for entire 50-55%.
It will take another 2 months for entire process to get complete.
Please a/c.
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the buyback also mentioned that shareholders will also be given the opportunity to tender more shares than they are eligible for, in case there are under-subscriptions in certain categories. so wouldnt it make sense to offer more shares than what v r eligible for (and hence not sell now), since some of the passive retail investors may not participate?
any risk that you see in holding on for couple of months of price dropping?
the buyback also mentioned that shareholders will also be given the opportunity to tender more shares than they are eligible for, in case there are under-subscriptions in certain categories. so wouldnt it make sense to offer more shares than what v r eligible for (and hence not sell now), since some of the passive retail investors may not participate?
any risk that you see in holding on for couple of months of price dropping?
came out to be 308 shares per 1000. much lower 30% ratio than expected 60% for retil (less than 200k value). suspecting that price will tank in two days, as many would come to sell excess shares. any views if it makes sense to wait to sell till price recovers?
1- acceptance form clearly states that
“any eligible person should tender only one form, irrespective of the number of folios he holds. Multiple applications tendered by eligible person shall be liable to be rejected”. that’s a bummer for me, as i had bought in multiple folios, same 1st/2nd holders.
anyone has experience from similar offers, if they REALLY check and reject applicaitons from multiple folios of same person?
2- does it make sense to offer say, all 1000 instead of only 308? i plan to offer 500, but not sure if offering and holding on to all 1000 makes sense.
Rajul
Can you pls confirm in what form (physical forms or soft copies) have you received the communication and when? Also, what is the last date of submission for the offer?
Received physical mail, on 3rd May. Offer opens on 8th May and closes 22nd May.