Feedback Message Board

Lokes ji,
In case of Nucleus, I believe that the acceptance rate will be more in general category due to non/ negligible participation of the promoters in the buyback. Let us wait n see.
However, I agree with you that in general the acceptance rate will be more in the retail category.
Thank you.

@ksrk sir: ya normally we all know that acceptance ratio is more in reserved category, whoever applying in buybacks knows this, I am applying from long time.

But since in this specific nucleus case, many are asking/saying about more AR in general category than retail, so for that only I have done study on various things and based on some factors only I posted my views for nucleus too. As I said there won't be much difference in AR between both categories but retail can still be more and I gave approx numbers too.

@KSRK sir : I am afraid now about tomorrow and day after tomorrow move in this share price, since i bought at high price today and normally shares fall after last purchase date of buyback and on record date :)
i think your purchase price is around 585. Regarding AR, please don't mind from my above message, lets see after tender period, i was just presenting my view based on some factors/studies. Lets hope it will be good for both categories :)

Lokes ji,
Sometimes our opinions may differ but not our relations. I don’t find any thing wrong in your comment n nothing to feel bad. Thank you.

I have 450 shares at 586 in one account and 34 shares at 582 in one account
As per SEBI guidelines which i read it was saying for retail it will be min 15% or their actual quota whichever is higher.

Lets see how much ER will be given in both categories

As mentioned and expected, it gave more than 6% cut today in price. Hope it holds 550-560 levels.

Lokes ji,
If the closing price at NSE drops below Rs.563.40 tomorrow, our two accounts will possibly be categorised under retail. Man proposes n God disposes. Waiting for the tomorrow’s announcement of the result of the already written examination in this regard. Thank you.

@KSRK: yes sir and its very much possible now with today closing of 567 rs, lets see tomorrow and lets hope your 355 shares account comes in general category :)

Closing price is Rs. 539.20. So both accounts will be in the retail shareholders category only. No problem.

Closing price is Rs. 540.90 So both accounts will be in the retail shareholders category only. No problem.

@kskr: ya it fell a lot again today as even market was very bad. Looks many will come into retail category due to this much price fall in last 2 days whoever bought nearby quantity to come in general category. Let's see how much ER and AR will be now.

Hello lokes Sir, Kamma Sir,

In general I want to understand, What should be our strategy for share price falls after important dates like ex-record date and tender dates?

Usually price falls on ex date or record date or soon after tender date finish.
I do not participate in buybacks only because of these reasons and don't know how to tackle this.
Please help me understand.

@NKJ: ya price falls usually as per record date etc but it has fallen more this time in nucleus due to market fall added on it and regarding strategy we can't do anything on it, we need to decide as per our buyback profit then remaining shares we can sell on market price if profit is there overall else we can hold considering share movement etc as like in normal secondary market shares.
And we can add more shares also after record date fall to sell in open market when price increase during tender period, it all depends on our conviction about share price movement. Nothing can be sure.

Thanks lokes,
I want to take part in buybacks but because of same reason i was not sure if after selling left over shares it will overall benefit and how much?
I know it depends on many factors like share price movement, ER, AR etc.
I will take part in couple of buybacks with small quantity and see.

Thanks again.

As i said, retail ER is much better than general category.....
But still ER seems lesser than expected in both categories, lets see how much is converted into AR....

Sir,
I am not surprised to see that the ER is better in Retail Category than the General Category. ER depends upon the number of shares held on the Record Date by the holders whereas AR depends upon the number of shares held on the Record Date and tendered for the buyback. As promoters are not likely to tender/ tendering insignificant number of shares for the buyback,AR will be naturally more. This is my understanding which may be proved wrong. Experts may enlighten me. Thank you.

it is only because of promoters and promoters group are participating the buyback. is it possible to change the decision of promoters to participate the buyback after record date?

I completely agree with KSRK sir's view. That is 100% correct.
People seemed to got confused at various discussion boards about ER of normal category shareholder(more that 2lac). Please understand this sentence, "promoter doesn't intend to tender their shares".
This means that, promoter is eligible(entitled) to tender their shares. But they will not tender their shares. And thats why in normal category, ER will be far less that reserved category, same as with other BB issues. But the actual AR will be a lot different and more as promoter will not tender their shares.
My expectation is for normal category AR will be around 45-55%.
And for reserved category as ER is quite more that expected ie. 16%, so i expect AR to be around 40-50%