Feedback Message Board

When Individual Investors applied for 56,48,190 shares and only 9,00,000 is reserved for retailers how can you say that AR can be 100%? Many people keep saying that AR can be 80%, how can it be when so many retailers applied for buyback? Please reply.

i think akshay is new in market....

Akshay ji,
Please note that all individual investors are not Retail investors. In brief, retail investors are those who are holding shares worth below Rs. 2,00,000/- whereas there is no such ceiling for other individual investors. I believe that I have clarified your doubt. I advise you to go through the previous posts to better understand the subject. All the best.

For <2L retail Investors, 1 out 3 is ER. So the shares held by <2L investors on record date shall be 27,00,000 (900000 x3). How many shares applied for buy back with in 2700000 shares decides AR and more than 33.3 percent?

Akshay,
Few details for your info.
For retail, 9L shares entitled at 1/3.
Roughly 27L retail shares available.
For others, 51L shares entitled at 1/9. Roughly 459L shares eligible in general category.
Total shares eligible for buyback 486L.

Total tendered shares 114L only out of 486L eligible shares.
Only 23.4% of shares were tentered.

So we can conclude easily acceptance ratio will be at least 2-3 times of entitled shares.

For example, if retail investors tentered 24L shares, others tentered 90L shares, then AR will be 100% for retailers, 40% for others. (24L retail+ 36L others=60L) ..
It's just for example only, AR will be determined as per exact tentered shares ..

Let me know if any queries

Please correct me if any too..

@Ravindra, thank you for sharing the information. Could you help me understand how AR will be 100% if retail share holders tender 24L share which is more than the number of shares reserved for retail category i.e. 9L? Similarly if I consider worst case scenario, on the record date retail segment held ~27L share which we can estimate based on ER. So if I hypothetically assume that all those retail people tender all their share (which is max 27L), wouldn't AR be equal to ER ?

I am new to buyback and trying to understand the buyback rationales. Please excuse me for my insufficient knowledge. Again thank you for your time and sharing the information.

@Surendra, AR always be more than ER, unless all the 100% of eligible shares were tendered (That's not at all possible for all the stocks)
Here only 23.45 % shares tendered.
Surely both the retail and general category investers have minimum of 2 times of acceptance ratio than entitled.

For retail, 15% of shares are minimum requirement. Then the retail investor's remaining shares will be considered in general category too.