Feedback Message Board

I have never found a one share strategy worthwhile, but this one appears to be different, because of the high price of an individual share.

Wanted to ask what happens if one tenders a single share from different demat accounts?

I remember that I had TCS shares in 2 different accounts, and had got different ER and different AR after tendering.

Would be glad of a response from anyone who has done something similar in the past.

Far as I can tell, the idea is to buy one share in each demat, even if the pan for those demats is the same.
I think the ER and AR is for PAN and not for demat, so that would be pointless, no?
What is the logic behind the calculation so that the one share purchased is at the advantage over say, if purchased for maximum allowed for retail, i.e. somewhere around 2Lakhs, 20 shares in this case?

One share in different demat and diferent PAN of your family and friends, that is when it works!!

It does not work for same PAN and different demats!!

I had 44 shares in one demat account, and 11 in another. I have got 2 separate emails, one saying I'm entitled to 7/44, and another saying 1/11.

Should I tender shares from seperate accounts, or from 1 account? (I have transfer set up). Will it make any difference?

Tender all the shares from both the accounts. We got lucky during lnt buyback. Had shares in two accounts and final AR was 100%

I will tender all, but do I move the shares & tender, or tender them seperately? I guess you mean the latter, but would be glad of a confirmation.

Off topic question, but asking here because I bought some TCS shares as MTF (using ICICI Direct) - are MTF shares eligible for buyback entitlement? I am guessing the record date will be late November, and the tender window will be in December. I intend to unpledge the shares in early December, before tendering them.

Intuitively, I think it should be, because the shares are mine, and they have just been pledged, but I could be wrong.

Request experienced members/those who have done this to share their experiences.

As far as my knowledge goes, you are eligible for entitlement. But obviously you will have to unpledge them before tendering..

BSE subscription data is available at https://www.bseindia.com/markets/publicIssues/ACQDisp.aspx?id=532859&type=OTB&idtype=1&status=L&IPONo=6143&startdt=22/05/2023

Any idea where the NSE data is? HGS is not present here - https://www.nseindia.com/market-data/public-issues-tender .

Apologies for the last message, hadn't seen the bit reg. clicking on the demand schedule.

So looking at the data, seems that the retailers are on a roll - have tendered a large number of shares, though we don't know as a percentage, unless we know the total number of shares.

      Hinduja Global Solutions - Closing data as on 02.06.2023 4.15 pm available on BSE Site;-      
      No. of shares bidfor      Applied for Buy Back
1      Qualified Institutional Buyers (QIBs)      -Shares 14,51,686
      1 (a) Foreign Institutional Investors (FIIs)       12,70,219
      1 (b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ InsuranceCompanies)       1,33,669
      1 (c) Mutual Funds       3,902
      1 (D) Others       43,896
            
2      Non Institutional Investors       43,03,948
      2 (a) Corporates       11,36,222
      2 (b) Others       31,67,726
            
3      Individual Investors       56,48,190
      3 (a) Individual       56,48,190
      Total Applications received by company are - 78313- Shares - 114,03,824
            
            
       Total No of Public Shareholders - 125374       Shares - 175,48,535
      Total number of Promoters - 14      Shares - 349,71,750
      Total Share holders - 125388      Total Shares - 525,20,285

Just got the mail. May 22-Jun 2. Entitlement: 53/140.

For recent buybacks, the AR to ER ratio has been at least 2.2. So expecting 80% AR. But the AR could be lower here, as people may be desperate to exit.

Expecting AR to be around 60%.

AR can be 65 to 70 %

Wanted to ask a general question reg. buybacks. Let's say I have 100 shares on cutoff date. I later sell 50 shares. If the acceptance ratio is 30%, and I tender 50 shares, will 30 shares get accepted or 15?

it will be based on what you are offering... if you are offering 50 shares with AR of 30% then it will be 15 only.. Hence you see higher % in AR upto 80-85%

@techuser I would not consider such a person to be an expert.

Wanted to ask reg. tax implications of buyback. Some say that buybacks are tax-free in the hands of the investor, while others say stcg of 15% is liable (Haven't heard people say if LTCG is applicable). Which one's correct?

An added positive is that you will not be taxed on the capital gains since it is a tender offer- as per value research online

@Wannable Value Investor
Don't worry
it is completely tax free as we are opting for tender route
company itself is paying taxes at 23.296%
that is why exempt for shareholders
if someone is saying it will be taxable under Capital Gain
They do not have any knowledge of taxation

Need some help in understanding the definition of a retail investor for the purposes of a buyback.
A retail investor is someone who has shares of value < INR 200,000.

But what is the price applicable? Is it the offer price? If it is the market price, then on what date? Is it the closing price, or vwap price? On what exchange?

I play it safe, I assume the price is 5% more then the offer price, and then buy. By this logic, I should've bought 929, but rounded down to 900.

But I guess I could buy more, safely.

Help from experts appreciated.

Sir,
As defined under Regulation 2(i)(n) of the Buyback Regulations, a “Small Shareholder” is a Shareholder who holds Equity Shares whose market value, on the basis of closing price on Stock Exchanges as on Record Date, is not more than ₹ 200,000/- (Rupees two hundred thousand only). As on the Record Date, suppose the volume of Equity Shares traded on BSE was 1000 Equity shares and on NSE was 1500 Equity Shares. Accordingly, NSE, being the stock exchange with highest trading volume, the closing price was suppose ₹ 100 and hence all Shareholders holding not more than 2000 Equity Shares as on the Record Date are classified as ‘Small Shareholders’for the purpose of the Buyback Offer…..
Hope it is clear now…. Thank you.

Does anyone know approximately when the buyback window will open and close?

Also, who's the lead manager and registrar for this IPO?

probably mail should come in this week for buyback opening and next week it should open i think.