I applied for 55 shares (which was above my entitlement), and got message of 55 shares allotted. They are yet to come in my demat a/c. Account has also got debited today.
26% is over and above entitlement? If somebody had 50 shares, was entitled to tender 7, but tendered all. This 26% applies to 50-7 shares or 50 shares?
https://www.bseindia.com/xml-data/corpfiling/AttachLive/A14B764C-FBBE-44C9-8F68-3300FB51A11C-073213.pdf Date of Opening of the Buy Back Offer Period: Wednesday, March 9, 2022 Date of Closing of the Buy Back Offer Period: Wednesday, March 23, 2022 Last date and time for receipt of completed Tender Forms and other specified documents including physical share certificates (if and as applicable) by the Registrar: Wednesday, March 23, 2022 Last date of settlement of bids on the Stock Exchanges*: Friday, April 1, 2022 *This activity may happen on or before the last date mentioned herein above
What is the experts' opinion? Won't there be higher interest in tendering and hence lower AR with the crash in TCS and further uncertainties / downside potential owing to tense geopolitics?
Is gain on buyback taxable just like normal equity?
Suppose I have 45 shares right now. Will I get to know exactly how many shares I can have to be just below the retail threshold of 2 lacs? Or is it like guessing and taking calculated gamble and then hoping?!
ValueSeeker ji, Not taxable. 45 shares is the correct one to be considered under the Retail Category. If the price increases beyond Rs.4400/-, you need not wait to tender for the buyback n you can sell in the open market. Thank you n all the best.
KSRK ji, thanks for your response. I wonder why it is not taxable! If I buy today 10 shares at 3800, and suppose they all get accepted in the buyback at 4500, won't I get an STCG of 700x10 = 7000? Why should it be tax-free?
Second part of my ques was, if the stock trades below 4000 on the record date, then I would be a retail shareholder even if I have 50 shares. So, buying 5 more shares - is it a gamble worth taking? Cos I will need to buy by 21st, and price could exceed 4000 in subsequent 2 days.
For first part - there is a tax on buyback which is to be paid by the company and not the shareholder tendering his shares. This is why for us, shareholders, buyback profits are tax free.
For second part - I can not say about gamble but I am having 50 shares. If TCS goes above 4000, then I will sell some to remain in retail category.
The burden of tax is to be paid by any one of the parties In case of buyback it is paid by the company itself that's why individual isn't required to pay additional tax
@antarix But your holding on 21st Feb will be considered, and it will trade till record date i.e. 23rd Feb. What if it is below 4000 on 21st, and closes above 4000 on 23rd? So, isn't it a sort of gamble of 2 days?
I will consider the price on 21 Feb only. If it is near 4000, I will sell some. If not, say it is 3900 on 21 Feb, then I will definitely keep all the 50 shares although later it may go up and cross 4000 on 23 Feb.
As I said earlier, TCS is a share with minimum risk to investment. I would have bought more, but funds constraints are there.
Entitled for Buyback: 16
Tendered: 200
Accepted: 54, i.e. 27% of tendered qty. and approx 21% of excess tendered.