Buy back rules link you have posted is old . New rules , SEBI have tried to plug many loopholes. They can’t do delisting without informing their intention in advance to exchanges, that also has to be done reverse book build only.
They can do buy back but their holding if goes up more then 75 % then even extra single share also above limit has to offloaded in exchange within one year.
And that’s why I was confused about benefit of this buyback
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Hi,
Before speculating into promoter’s plans of delisting the company, we should atleast make coherent statements. If buyback price is not attractive and only promoters tender their shares, then promoter shareholding will go down (and not up). This is not the first time its happening in a company, I was involved in a buyback in Nalco in 2021 where buyback price was actually lower than CMP and government majorly tendered their stake. What happened after that? Government’s stake went down (and not up).
Also, about your comments about some secret delisting ballots, its not how delisting works. The reverse book building process is completely transparent, where you can actually see (in real time) how many shares are getting tendered along with the tender price. So I would request not to speculate, unless there are reasonable grounds for the same.
Disclosure: Invested (position size here, no transactions in last-30 days)
Thank you. So what you are also saying is that as per the rules they have to necessarily announce their intention to delist before taking their holdings over 75% - is that correct?
I did not know how the delisting/reverse book building process works - I was asking a question if the price is open/transparent during the reverse book bidding process or will it be secret as I couldn’t make that out from the few articles I read. @HIMSHAH clarified that it is open and transparent. So that’s that. Not sure why you think I was making some claim that it’s secret.
Regarding the buyback, whether 75 is an attractive price or not is in the eyes of the beholder. In my view it is not, but for some people it may well be a good price. After all, it’s a few years since the shares have quoted in that range. Of course, if only the promoter tenders, their shareholding will go down. But that’s not what I said. Please read my comment properly. It is quite possible for promoter shareholding to go up if they tender some and others tender more. You can do an excel calculation. Again, @HIMSHAH in his latest comment has added some additional context regarding exchange rules that makes his initial observation clearer to me.
Fair enough about speculating, but I see this as a dialogue/exploratory discussion for me to better understand possible outcomes. It’s not like I blamed the company for cheating public shareholders. I am invested myself and have stayed invested because I consider it good value + trust in mgmt.
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True, they have to clear before offer that they want to delist. Then instead of tender it will be reverse book build . They just can’t say after buyback if their holding say increase to even 90 , that they want to delist. Then they will have to offload shares till 75 % again.
Nothing wrong in assumption. We are here to not only make money but safeguard our capital.
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Anyone tracking this. Now market price is close to Buyback price, what happens?
, you can sell shares in market at higher price , or even if promotor. Wish they can increase buyback price.
Buyback update - https://www.bseindia.com/xml-data/corpfiling/AttachLive/00406cbe-371b-4ecb-ba0b-0d6a8bc4c50b.pdf
Promoter group tendering 3.6 crore of the 4.6 crore shares proposed for buyback. Post buyback (assuming all 4.6 crore shares are tendered), promoter holding will go down from 69.41% to 67.55% or so, as per my calculations. Promoter group will get about 270 crores at the buyback price of Rs. 75 per share.
Not sure what newsprint prices are currently, various articles seem to indicate they are staying stubbornly high. I was hoping for a stronger correction which has not played out.
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Noticed something weird in this Qtr results that i couldn’t understand. Can anyone help me understand what does highlighted term means?
They have not mentioned in the notes what impairment they have recognized here. I don’t recall any recent acquisition, maybe it is one or more of of the FM channels they may have acquired under MBL. But I am not sure - could be something else too. We will know more during the investor call, I guess.
For a general understanding of goodwill impairment, you can read this article which explains it well - Goodwill Impairment - Balance Sheet Accounting, Example, Definition.