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Admn@chittorgah

Promoters background written here belongs to Cholamandalam finance NCD. Please correct it.

Need a clarification on ER. Let us assume an investor with 1000 shares and ER and 25 shares on record date not interested in trying extra shares acceptance tenders only 25 shares as per ER? Will all 25 get accepted here? Or is it mandatory to tender at least 1000 to get 25 accepted.

L&T like share that is darling of FII, DII in buy back period can also overshoot 3200 in which case an investor may prefer to have an option also sell remaining shares in market.

Does anyone have an experience? What does buyback letter state about this? Or KASK Sir, do you have idea with your vast experience in buy back?

Thanks for sharing Valuable input .
One more query If I m having 66 shares on record date and entitlement is 0f 15 shares ..
Now if I offer 50 shares in buyback then my acceptance ratio will be 15 + proportionate excess or 15 only as I hv not submitted entire shares held on record date

@Plaza
Holding 66 shares on record date and offering 50 shares in buyback results in.
- 15 shares entitlement accepted
- Additional shares in excess of 15, proportionate to 35 extra offered from remaining pool of untendered shares by others. This way additional shares accepted will be less than, if 66 was offered. However, AR % will go up as a smaller number of shares are offered closer to entitled quantity. If only entitles shares are offered , ER=AR!

Today, Tulasi Tanti founder chairman of suzlon energy passed away. wonder what will happen to this bankrupt company with pending rights issue. May be gets taken over soon with no one to steer it..

LIC is good stable share to hold in one's portfolio. Like other PSUs , it will reward with rich dividends periodically. It is unlikely to offer huge capital appreciation. After increasing it's float through FPO or OFS at an appropriate time, it can enter NIFTY or BANK/FINANCIAL NIFTY at which point FII participation may give it a fillip.
Do apply ..

GAIL shares like other PSU stocks will remain in price levels of 125 to 155 as in past many years. It moves up only during dividend & buy backs. Those buying it exclusively for buy back be aware that last buy back acceptance ratio was 100% , however then buy backs were not so much publicized as now.

With many more climbing buy back bandwagon , AR will be lower and GAIL as a share does not move up again as in TCS. Those happy with periodic big dividends can take chance as rest of holding will be at lower price. There is also possibility of GAIL moving to 130 + post record date, as just a week before buy back announcement it was available at 140+.. Decide on based on your own risk. Buy back will also take about 6 to 8 weeks from record date, that is close to 3 months locking funds.

Yea its very much in overbought zone, ideal would be tu buy around 145-150.
Any profit as per expected acceptance ratio (25-30%) would be diminished by rest 70-75% share price falling back to where it belongs.

@Ou Ai

Agree with your line of thinking. Not looking to buy GAIL at current levels specifically for buyback.

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...

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.

Clearly elaborate logic and thinking of retail share holders to tender share in small share holder category. Nice work. keep it up thanks

Gulf Oil Lubricants announced Tender Buy Back
Buy back price Rs.600
Current market price Rs.491
Buy back quantum 14.16.667 shares (2.8% of equity capital)
Promoter's holding 71.12%
Record date 18th February 2022

Yes record date is 21st Feb. Ex buyback date is 18th Feb. On this board many wanting to buy are not clear about these dates. So, wanted to mention record for ex date for their benefit that must buy before 18th. Ex got left out though. Here, we can't correct it. Thanks

you are right, but in that case, its even better to be more clear to mention directly like : "last date to buy with buyback eligibility is 17th Feb" since many might not be knowing about these ex dates too....

Yesterday, Tata Sons & Tata Investment Corporation both announced their intention to participate fully to their eligibility in buy back. Tata Sons alone account for about 9000 Cr plus. that is about 50% of buyback amount 18000 Cr.

GE Shipping ( Great Eastern Shipping) announced board meeting on 27th December 2021 to consider buy back.

GE shipping board outcome

Buy back of 225 Crores amounting to 10% of equity and reserves at Rs.333 per share through open market route.

Sir,
I have expected that the buyback will be through Open market only. Hence, not disappointed. Thank you for updating.

As expected, due to heavy submission in buyback, small shareholders got a poor acceptance ratio of 15.5%. Those who purchased 800~900 shares at 190 to 200 are in big loss at balance shares quoting at 166.

If more shareholders share their details like holding on record date, shares tendered & accepted , we could try know this better. But, since the time buy back section started on big demand from main board, no one even visits these sections!

True..

Unitholder gets extra interest varying from 0.05 to 0.15 for one year subject to holding those units till the end of first year.

Also interest over Rs.5000/- on NCDs is subject to TDS like fixed deposits. NCDs from other companies don't attract TDS.

Form 15G/H accepted.

You can sell balance shares. Else, you can also tender all the shares and higher number may get accepted as a small shareholder.