MOIL Limited Buyback (MOIL Buyback) Detail

It seems it will not cross 185. In that case need to keep hold of all till tender date. Can we sell some qty after tendering? Say 20% as AR is unlikely to be above 80%. Will that result in some penalty?

@coldburger: after tendering shares, those are not allowed to sell, broker (mine zerodha) freezes all those shares and remaining shares will come back to demat after buyback is over.
As explained in my other message here, you can sell after record exdate if you wish, then you can buy again later for tendering, that is possible.

once you tender the shares, shares will be debited and you won't be able to sell them
once company accepts the shares, they will return remaining shares to your demat account

Thank you sir for sharing journey post listing of MOIL which happened in 2010. I am victim of MOIL since 2010. During IPO, There was a buzz about strong fundamental, zero debt, good divided paying, brighter future due to monopoly etc. I could not get IPO allotment so I heavily invested on listing day. I purchased qty 800 @ 520-545. Due to bonus issues, MOIL qty has become 1600 @ approx. average price Rs262. I am still holding qty 1600 till date and also not planning to tender share in buy back. In fact, I have purchased qty 2000 @170.4 in two different accounts to buy back. Let see how my strategy will help to minimize loss. I was not aware that MOIL has given Rs 98 dividend till date. I think as on today or after buy back I will be in profit. Holding period is no issues with me.
Any comments wrt above, most welcome. KSRK sir, your comments are highly appreciated and obliged also.

Very good suggestion by KSK sir.
In buy back there is an opportunity for acceptance of extra shares consequent upon non participation of many holders.
Moreover, as a thomb rule all shares in hand is to be tendered which will increase the acceptance of extra shares.

Sir,
Thank you for your kind compliment n detailed explanation.

GE Shipping ( Great Eastern Shipping) announced board meeting on 27th December 2021 to consider buy back.

GE shipping board outcome

Buy back of 225 Crores amounting to 10% of equity and reserves at Rs.333 per share through open market route.

Sir,
I have expected that the buyback will be through Open market only. Hence, not disappointed. Thank you for updating.

Sell on Wednesday above 185 and book profit.
Invest those money in next IPOs.
No cleverness in holding for more days.
Thanks

Ankit ji,
Our opinions may differ but not our relationship. Thank you.

@ KSK Sir
After going through different view point in this aspect , I put some points for taking conversant decision.
1. This share was listed in Dec 2010 , I can till recollect the craze created at that time. Everybody was speaking of Moil, Moil, Moil . But eventually after eleven good years we see it as a wealth destroyer as is relevant for most of the PSU Ipos.
2.IPO price was 187.50 (allowing for 1:1 bonus in sept'2017), listed at 282, days high295 and end with232. The Ipo was subscribed 56times, Qib 49, Nii 143 ,retail 33. In the context of 2010, it was a fabulous subs figure. One black spot that the employee quota was not subs in full.
3. Till date the company has paid total dividend of about Rs 98 per share. But within one year of listing its price droped to as low as 113. Since then its price range is 98.1 to , 269 ; covid low 100. One year low being 133.5
4.At any rate it is not any performing share. Just before the news of buyback its price was 172.4 ,the first news of buyback could not lift it above 180.
5. The present situation of market fall drifted it to 166 and now with the announcement of ex-date , it touched about 181. Had not there been any news of buyback it could have drifted to 155-150 as is seen in case of other PSU.
6. There are some interesting points relevant to this buy back. As at 30/9/21
Out of 23.73 cr shares,. 64.35% belongs to the promoter and 35.65% to others. Retailers portion being 13.14% (3.12 cr , average size 125 shares). 3.38 cr share is earmarked for buy back.
7.Arithmetic shows that the Govt may not be interested to take part in this buyback as much as their non participation will make the promoter stake at exactly
75 %
8.If the promoter takes part the ER will be 13.14% ,if the promoter does not it will be 37% which may conform to upto 70% AR.
9.Now come to a critical value calculation. Theoretically selling or not selling in buyback does not prove to be that material but buyback can give some tax advantage.
10.Taking price at 172.4 as mentioned earlier,the post buyback corresponding price stands at 201 as buyback is essentially a stake appreciation. If anybody argues that its price would have been 150 without any news of buyback, still then appreciated price stands at 175.
11.For buyback and dividend, the amount comes from the reserve. This buy back is good for Rs 29.24 dividend which may have been the alternate action.
If anybody asks me whether to buy at 180, I shall say in affirmative; more and more if he has taken at 170 level. If the promoter does not take part "Balle Balle"
Thanks

Sir,
My cost price of the 1000 shares,I purchased earlier, is around Rs. 174/-. I wholeheartedly appreciate your analytical views. Good. Keep it up. All the best n god blesses you.

KSRK Sir,
I heard news of ajanta pharma buyback. CMP is 2122. And buyback price 2400 (tentative).
This news is true or not?

Jigar A ji,
Buyback price will be known positively on 28/12. On the previous occasion in 2010, buyback was through Tender Offer and has given reasonably good profit. AR was also around 40%, if I am not wrong. Anyway, let’s take a decision only on knowing the details of the buyback on 28/12. Thank you.

KSRK Sir,
Okay thank u very much for ur valuable reply.

I don't think any benefit in entering now.
it is already 180 and market is also volatile so it can drop precipitously after record date.
I am staying away from this.

Those who entered at around 170 may still gain something because fundamentally stock is alright

Sir,
Thank you very much for sharing your views.

Record date 30th Dec 2021 (as per BSE)
Not enough margin left if shares were to be returned post buyback as it may happen after budget
I wont risk if shares (not accepted) are to come back after February 1, 2022. Difficult to predict market post budget in any given year

Sir,
Thank you very much for sharing your views.

Dear Members,

this is the first time i have ventured into buyback, kindly guide how to participate for buyback with zerodha . . .

Thank you in advance

Regards

LABHesh

@coldburger :

c1 : yes, but you will have to buy 600 shares again before tendeing
c2 : yes

do not sell before ex date

buyback will open on zerodha and you can bid there

@labhesh @coldburger:
Once buyback tender period will start, then from zerodha you can place your order from here: Console ->Portfolio -> Corporate actions -> Buybacks.
There you will see open buybacks and can place order by taking cursor near symbol you will see options. For more info, check this link:
https://support.zerodha.com/category/trading-and-markets/corporate-actions/articles/how-do-i-apply-for-buy-back

@coldburger: you will get mail after record date is over for your eligibility and shares holding on record date. you can place order for all shares as holded on record date as per mail (but it should be in your demat while placing order in buyback , so if you are selling after record date then you can buy again to tendor if you wish or you can tender remaining quantity). In buyback mail, dates will be mentioned for tender period upto which you can tender shares in zerodha. Also read above link info in zerodha

Record date for MOIL is 31st dec 21.
CMP 175.90
Buyback price 205
Expected ER is 18 to 20%
Expected AR is 38 to 40%
Both ER, AR may be vary due to price & volume behavior.
Thank you.

Buy backs are beneficial to those holding shares on long term investment. We are trying to take an advantage of a small clause in the regulation favoring small investor below Rs.200000/- with 15% of buy back size. Of late, with several investors cramming this category buying lots lower than 200000 with multiple folios, acceptance ratios have reduced considerably. Those holding from long term with historical prices are normally not affected in post buy back decline share value. We, who buy after announcement are often affected as seen in Star cement, NIIT(initially), Goldaim, and so on. However left over shares in NALCO went up, same is not the case with NTPC, EIL.

Upon announcement ,entire buy back process, involves postal ballot, newspaper advertisement, SEBI approval of draft letter, final letter, followed by record date, opening and closing, about 12 weeks and some case like NIIT it was 20 weeks. This definitely blocks capital forgoing other opportunities in market. So do buy in buy back, if,
1. One is willing to wait longer time post acceptance for the share price to recover, preferably shares in IT sector or large cap shares.
2. Be ready to buy early and sell entire lot or most part if there is appreciable price increase just before record date.
3. Be prepared for a decline post buy back with waiting period of over an year in small cap or family owned small companies.

Do take your decision based on this experience.

Ou Ai ji,
Thank you for sharing your views.

Any views regarding GE Shipping Buyback?

Sir,
On knowing the details of the buyback on 27/12, we can take a decision. Till then, wait. Thank you.

*MOIL BUYBACK UPDATE*

MOIL has fixed 31st Dec 2021 as *Record Date* for determining the entitlement and eligible shareholders to participate in the *Buyback Offer*

@Experienced members,

I am new to buybacks, so may ask questions that are very obvious, please consider. Thanks.

Can/Should one buy shares of Moil for approx 1 lac, considering the current price of around 172, and buyback price of 205?

Generally what I observed is,
that share price touches (or comes in nearby range) to buyback price 1-2 days before buyback date, right?

Buybacks are definitely a game of patience and I am in it...as of now.

Unknwon ji,
Patience often rewards you. Enjoy it. Thank you.

It is too long a wait... No announcement of record date. Volume also very low and cannot exit huge qty on high price it hit like 175.

Dear ColdBurger,
When you enjoy the waiting, the resultant amount of the benefit will be more worthy. I am quite confident that you will reasonably be benefitted in this buyback. Thank you.

Team Chittorgarh,

I heard James warren Tea also come with buyback offer at 295 and CMP is 295.

If yes than please open separate page for the same.

Regards

LABHesh

Sir,
I am of the opinion that one can purchase some shares ( Half of the normal investment generally made in each buyback) if available @ Rs. 245/-. Of course the size of the buyback is a small one. We can take a reasonable risk. Thank you.

When the share price has touched Rs. 242.40, somehow I missed. I am looking forward n waiting for the price of around Rs. 240/- to Rs. 245/-. I am not in hurry. Thank you.

Please open a page at the earliest for the buyback of CHEVIOT

CHEVIOT BUYBACK
Size of the buyback. 02,50,000 shares
Buyback price. Rs. 1725/-
CMP. Rs. 1465/-
Mode of Buyback. Through Tender Offer
Record Date. 17/12/2021
Personal View. If available @ Rs. 1400/- one may try with a hundred shares.
Thank you.

IPO BULL JI,
Is it worthwhile buying a stock with buy back news anymore ? Depending upon the Size of the buyback, Track record of the company, difference between the CMP and the Buyback price, sustainability of the share price during n after the period of the buyback, holding capacity of the investors during the tough time arises if any , conditions during which the buyback is operated, YES it will be worthwhile.
I also agree that the prevailing conditions are not much attractive n favourable. But they will not be the same for ever. We have to be attentive, selective and watchful to grab the opportunity at an appropriate time.
Please don’t be disappointed. Look forward for the better opportunities. All the best. Thank you.

@KSRK
What will b the ar for moil.

Thanks.

@KSRK Sir- Thanks for replying.
May request you that please don't use Sir work at least when replying to my query! I regard you much for one the best forum members with sane suggestions.

Dear ColdBurger,
I am 63. I don’t know whether the person whom I am addressing is elder to me or not. Moreover, I love to respect each and every one. Hence calling everyone sir/ ji is my passion. As you are specific, now onwards I address you as dear……. . Thank you for your kind n affectionate words. All the best.

Dear Team members,
I have two dmat a/c of same name. In one dmat a/c I have 200 shares & 50 shares in second account at record date which is below of 2 Lacs limit. May I submit both accounts shares for buyback. Please advise.

Regards

@sudhir: if both demat account belongs to same pan number then combined shares will be considered on record date for calculating retail category. So with 250 shares, ya you will be in retail category.
Yes you can submit shares from both demat for buyback via your broker.
Record date is still not announced for moil buyback.

Thanks Lokesji for your kind advise.
Regards