This is the ratio that determines how many shares an investor is entitled to tender in the buyback, based on their shareholding as of the record date.
The entitlement ratio indicates the minimum number of shares that will be accepted in the buyback. It is always calculated on the record date and is calculated as per below:
Example: Suppose the buyback size is 2 crore shares. The retail quota is 30 Lakhs (15%). The total number of retail shareholders on the record date is 50 lakhs.
So. the entitlement ratio for retail shareholders would be 30/50 = 60%.
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