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1 Comments

1. Imhilli

| Link|July 1, 2023 11:10:55 AMReply

Can anyone please explain what is meant by acceptance ratio. Is the ratio applied over entitlement ratio? For example, entitlement ratio for RII is around 23% here. If acceptance ratio is 50%, then whether 23*0.5=11.5% shares will be accepted as buyback? Please correct me if I am wrong.

1.1. Sandy Investor

| Link|July 1, 2023 1:07:16 PM

If AR is 50%, and ER is 23%, then first they will accept 23% as per ER and excess shares over and above ER offered by you will be accepted @ 27% (AR 50% - ER 23%)

Eg If someone is holding 100 sh and tendered entire 100 sh then acceptance will be
ER 23 + 20 (27% of excess 73) = 43

1.2. Subrahmanya Bhat

| Link|July 1, 2023 4:24:15 PM

In simple terms, entitlement ratio is minimum number of shares that will be definitely accepted in buyback and acceptance ratio is the actual number of shares that are accepted.
Acceptance ratio will be always larger than the entitlement ratio in all buybacks.