SMC Global Securities Buyback FAQ's

The SMC Global Securities Buyback price is set at Rs 115 Per Share. The SMC Global Securities Buyback opens on May 20, 2022 and closes on August 16, 2022.

There is no concept of Tender form in case of an open market offer through the Stock exchange. Any equity shareholder holding the Equity shares of SMC Global Securities Buyback can participate in the buyback offer through their stockbroker.

The Public Announcement for SMC Global Securities Buyback can be download here.

Any equity shareholder holding the shares in Demat form can participate in the buyback offer through their stockbroker. The physical shareholder can participate only once the shares get converted into a Dematerialized form.

The shareholder needs to inform their broker on the details of the Equity shares they wish to sell. The broker will place a sell order whenever the company places a buy order for the buyback. The trade would get executed at the offer price or lesser only when the price offered by the shareholder matches with the buy order placed by the company.

Necessity of the Issue:

The buyback aims to utilize the net proceeds towards the following objectives:

• To improve the return on equity through the distribution of cash.
• To improve earnings per share by reducing the equity base, thereby leading to a long-term increase in the value of shareholders.
• The Buyback offer is a strategic decision of the company taken based on the assimilation of the operational cash needs in the medium term and for returning surplus funds to the members effectively and efficiently.

The SMC Global Securities Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one’s need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.