And now Buyback has also lost charm just like IPO's, thanks to ever increasing tech & info reaching across all types of investors. New age digital brokers pitching in hard about arbitrage opportunity to new age investors.!!!
Total shares tendered in Individual category - BSE = 6,22,21,854 NSE = 1,14,09,476 TOTAL = 7,36, 31,330 Assuming 50% to 30% to be small shareholders(below 2 lakhs) AR can well be between 16 to 28%.. A far cry from previous cent percent AR. Can result in net loss, if TCS do not cross 3800 to 4000.
4.1cr shares were held by small investors on record date and about 15cr shares by above 2lk holding individuals, so it’ll be around 30-35% of 7.36cr total individual investors. Expecting 25-30% AR which falls into your upper range expectation. Anyways acceptance difference will be 0-3 shares depending on num of shares tendered by small investors.
Btw, why did you say net loss even when price stays in 3800-4000? I think it Will be in profit even if bought at 4000rs and 25% AR and selling rejected shares at 3800
As per buy back Prospectus of TCS Number of Small Shareholders is 21,10,826, Holding 4,10,51,350 Equity Shares. Total Number of bids received - BSE 7,88,620 + NSE 346343 = 1134963, Even Assuming that all bids are from Small Shareholders ( which is not a fact ), only 53.77 % small shareholders have submitted bid.
So the Acceptance Ratio will be at least double of Entitlement of 15%. Means Acceptance Ratio will be at least 30%
@SDZ, What i have written is - - if it does not cross 3800-4000,i meant if its below 3800. Also two times delivery (DIS) charges will apply, once for accepted share and secomd time for selling balance shares. But let's all hope for atleast 50%AR