NLC INDIA BUY BACK OFFER.pdf (631.1 KB)
NLC india, yesterday has announced its buyback of 9.28% of shares @88. Closing prices yesterday was Rs.73 and today it closed around Rs.83 making handsome gains on same.
People who are looking for decent returns can enter NLC india at lower prices for Buyback purposes as it seems nearly all the shares will be bought back. PA Wealth Advisors www.pawealthadvisors.com has also recommended this stock for buyback activity only terming it as special situtation idea.
Acceptance Ratio expected for Small Shareholders 97%
Buyback Price has been fixed @88, so as low as we buy higher the returns will be and process is expected to be completed in 3 months maximum
(Note: Please read the attached report for more clarity on calculations part)
The filing states that the promoter of NLC India, President of India, that owns 83.94% shares is also interested in participating in the buyback.
How did you get an expected 97% acceptance ratio for small shareholders?
15% of Buyback amount is reserved for retail quota as per sebi guidelines and Retail investor in this company are merely 1.43% as mentioned in report of PA Wealth Advisors.
You can read the report for more clarity
now retail participation will increase and with 6% arbitrage it doesn’t makes sense to plunge .
Yes already mentioned that lower we are able to buy higher will be the returns and retails participation will increase but i feel in worst to worst case scenario also 50-60% acceptance ratio will be there.In 2017 also NLC did buy back and acceptance ratio was almost 80% then for small share holders