Rane Brake Buyback FAQ's

The Rane Brake Buyback price is set at Rs 825 Per Share. The Rane Brake Buyback opens on October 27, 2020 and closes on April 26, 2021.

There is no concept of Tender form in case of an open market offer through the Stock exchange. Any equity shareholder holding the Equity shares of Rane Brake Buyback can participate in the buyback offer through their stockbroker.

The Public Announcement for Rane Brake Buyback can be download here.

Any equity shareholder holding the shares in Demat form can participate in the buyback offer through their stockbroker. The physical shareholder can participate only once the shares get converted into a Dematerialized form.

The shareholder needs to inform their broker on the details of the Equity shares they wish to sell. The broker will place a sell order whenever the company places a buy order for the buyback. The trade would get executed at the offer price or lesser only when the price offered by the shareholder matches with the buy order placed by the company.

Necessity of the Issue:

The Buyback is undertaken by the company to:
(i) Reduce outstanding number of shares and consequently increase EPS assuming same profits are earned.
(ii) Effectively utilize available cash.
(iii) Improve key ratios like Return on Equity Capital.

The Rane Brake Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one’s need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.