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1. Ou Ai   I Like It. |Report Abuse|  Link|March 27, 2022 4:50:28 PMReply
TCS buy back reveals an interesting conundrum. This board , other financial newspapers, media, brokers, digital media advocated all about good acceptance at big price difference highlighting 15% reservation portion to small shareholders. This attracted lakhs in buying small quantities in multiple accounts. The word is so well spread that even retail shareholders holding above 56 shares began to shed their extra quantities to be in this category. This was also due to 100% AR in past buy back where they felt missed out.

Buyback is mainly an opportunity provided to shareholders to distribute surplus cash more efficiently in lieu of dividends now tax inefficient. In TCS particularly , due to excessive information disseminated several long term retail shareholders sold excess shares at higher prices before record dates to be below 2 lakh holdings and then bought back post record date at much lower prices. So naturally numbers wanting to shares preferential 15% small investors added up reducing the AR. These are real earners both from markets and higher AR. They are real winners from both ends as they don't need to wait for their balance share price to rise immediately with their original holding at historical prices.

This now may repeat in all good company buy backs specially A class shares. So, one needs to be watchful before deciding to participate, if investment is only for purpose of leveraging from buy back. Buy back process in itself takes about 8 to 10 weeks...

1.1. KAMMA SIVA RAMA KRISHNA   I Like It. 1|Report Abuse|  Link|March 27, 2022 7:05:56 PM
Ou Ai ji,
Very very nice analytical views. I wholeheartedly appreciate your efforts to place the elaborated study. Good. Please keep posting such helpful messages. Thank you.
1.2. Pbdrajkot   I Like It. |Report Abuse|  Link|April 4, 2022 12:34:01 AM
Clearly elaborate logic and thinking of retail share holders to tender share in small share holder category. Nice work. keep it up thanks