Feedback Message Board

what will happen when less eligible people tendered for buy back? would matrimony take more shares from tendered people?

Mohsin Ji, we used to invest lakhs of rupees in these buybacks and take risk of market fluctuation on unaccepted shares, and remain invested for 90 days to 120 days still not getting enough return when there is so much good premium between CMP and buyback price.

In the end, we exit at par or in the loss. Price in the market falls immediately after the ex-date and one day before the date of credit of unaccepted shares. And all benefits are taken by a small retailer who is participating in a single share. Out of 97,000 shares in this buyback, approximately 30K to 35K are such people who participated by single share and due to them, we are losing badly.

Now buyback does not remain that attractive what it used to be in last years.

Result of buyback in this Financial year:-

Mayur Uniquoters:- AR=6.5%,
Gulf Oil:- AR=25.50% but a fall in the market price resulted in overall loss,
KPR Mill:- AR=32.50% earned a small amount of profit,
FDC:- AR=12% the gap between the record date and the settlement date was very long,
Sarda Energy and Minerals:- AR=37%,
Motilal Oswal:- AR=32%,
Ashai Songwon:- AR=7%,
Zydus Health Care:- AR=12%,
Sinclair Hotels and Indiamart resulted in a very less acceptance ratio.