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TCS Buyback

@ Ou Ai & IPO Mitra are profoundly knowledgeable persons in this subject.
I want to put some points for reconciliation.
1. Buyback avenue is used by many companies for manipulation of share price by creating a hype. Buying 1 - 1.5% of shares does not change the ground situation to a great extent. If the company wishes to equitable distribution of some fund in hand , it should take recouse to dividend. What is said hitherto does not apply to big and renouned companies like TCS, Infosys etc. Here it is to be seen as benefits to shareholders envisaged primarily for the long term holders but some opportunistic investors will flock to take the opportunity given to the retail holders who will hit and fly. So the idea that the long term holders will fly with this little benefit is not confirmed by thier behavioural pattern as is seen in earlier occasions. Nor some quarter's results can subside the fancy of such persons though there may be some minor melting.
2. What is the benefit we are actually running for?
It is about Rs 49 per share + tax about Rs 10 , So about Rs 59 outlay of the company . For retailers some additional benefits for extra acceptance.
3. The company could have paid dividend @ 59 using the same money , tax to be paid by the recipient. Payment of dividend reduces the book value and market value instantly , so it may be thought to be a partial realisation of the share but people forget it and though the book value does not repair until further addition of profits etc market value repairs and goes up.
4. In case of buyback, the persons who tender fly off with the available benefit but those who do not tender gets the benefit in the form of stake appreciation by increased book value,eps , perceived market value ,lower number of shares.
5.As to tax benefit, in case of tendering in buyback the exemption benefit is limited to buyback price less recorded price .Taxation on other parts that is recorded price less cost of acquisition (w.r.t grandfathering clause sec 112 if applicable ) remains as usual. So in this case if the recorded price is 4000 , tax is to be paid on 4000 minus cost of acquisition. This is a good benefit. If the person does not tender in buyback but sells after some time at 4500, full tax is chargeable.
Now long term holders if does not tender will hold the benefit of grandfathering clause and LTCG . If they sell and reenter may attract STCG.
6. As to grandfathering , closing price as on 31/01/2018 was about Rs3100 for the original holding which is protected. For bonus share issued thereafter 1:1 in May 2018 will be fully taxed (overall Ltcg exemption one lac) with cost of acquisition zero.
7. Those who enter only for buyback, should keep in mind that the ultimate gain or loss will depend on the entry price besides the AR .From declaration to ex-date minus 1, there are atleast five disceet phase of prices , the first one for trading and there after positioal trading and with the trading accumulation at convenient points.Alternately one may start buying in ones and twos after the initial dust is settled and wait for dip which is most likely to come by.
In this case dip may be extended to 3700 and even lower to 3600 in odd circumstances.
So calculated and patient approach is required to extract the best.
Thanks

TCS Buyback

Very nice explanation. One thing hit me that we may still need to pay tax on buyback gain based on price on record date and cost of acquisition. This is something new to me, and worry it will make tax computation little more complex.

I too have accumulated but i am impatience person and do in one go. Once i have added fund and that causes higher buy price. One account is full with 46 for another bought 20 today @3694. Don't know why i hurry so much every time and only think that price will go up the moment i add fund 😒

TCS Buyback

@ Investormahesh
Yes , They are correct if buyback tax is paid @ 23.2% on the whole outgo by the company which is most likely in view of the reason mentioned by you.
The matter stands as follows :-
1. Company has once paid tax while the profit is made.
2. Now in buyback , per bought back share a tax of Rs 1044 is to be paid by the company.
If a person buys at zero and sell at 4500, maximum capital gain tax may be 675.( without assuming any exemption clause.

So the real beneficiary is the Govt and those you have mentioned.
In this budget you may see some change in this matter especially in case of open market buyback where in addition tax is to be paid by the shareholder also.

TCS Buyback

Hi, I have 70 shares of tcs. Amount is greater than 2L limit of retail category. Now what should I do? If I gave only 44 shares for buyback will I consider as retail category?

TCS Buyback

How is the retail investor limit of 2Lakhs decided. On buying price value / Vaue of shares on record date or Value at the buyback price.
Someone Pl clarify.

TCS Buyback

@Safe Bet: 2L limit will be based on what is the higher price (NSE/BSE and some %age trading rule). Mostly NSE/BSE price pair up to paisa to keep a 5k margin and ensure it does not cross 1.95 L . Usually on record date the price fall sharply as may riding the buyback for positional exit on ex-date. I guess price will not remain above 4000 on record date and 50 shares should be ok but be alert on ex-date/record date.

TCS Buyback

Why is TCS seeiny a free fall despite buyback offer @4500? I am a novice investor bought 10shares @3950 level

TCS Buyback

I believe it will rise to 4100/- level at least before ex date.

MOIL Buyback

From tomorrow we can tender in buyback. In IPO forum I read that if someone has only one share then tendering on first day of offer period results in 100 acceptance.. So is there anything related to better chance better we submit? Sorry if my question is foolish, first time going for buyback.

MOIL Buyback

Single share is sure to be accepted.
No preference like first come first serve even in case of single share .

MOIL Buyback

Single share is accepted for sure.
No preference like first come first serve even in case of single share.

TCS Buyback

TCS ki to lanka laga di.
RIP those who purchased around 3850. Including me.
Will it rise to 3900 - 4000 also again?

TCS Buyback

Whole market and mostly all shares going down so TCS will also fall. Along with markets, it will also recover. Around 1 more month is there for buyback record date.

TCS Buyback

@lokes,
Yes, because of FII selling overall market is down impacting TCS as well. But I was not expecting TCS to go this much down because of buyback.
Now it is giving enough time to buy at this level and if FII selling continues then it will go further down. Then it may not recover upto 4000 means AR will be lesser.

If it has to recover then 3600 is right time to start recovering. Hope budget is good. Usually its pre-budget fall but FIIs seems to be in different mood.

Just my thoughts. I would love to see it recover, there is so much time for buyback dates.

TCS Buyback

Are we headig towards lower AR???

TCS Buyback

Tcs Buyback Record Date Kab Ki Bro

TCS Buyback

@lokes,
The other day @NEETINIPO told that in buyback,there's no value of fraction,suppose I have 2 TCS share to tender in BB and AR is 60%,then 1 share would be accepted or both share since tendered share is only 2,I don't know this so want to know,
Thanks

TCS Buyback

@sbipo: 1 share will be accepted for sure if 1 share held on record date and tendered. From 2 shares, 1 may be accepted and from 3 shares , 2 or 3 may be accepted, depends on AR. Am not sure will they accept 2/2 or 1/2 when AR is 60% , didn't had such experience before and didn't heard from anyone. Mostly it will be 2/2 , you can try this time from one account and let us know :)

TCS Buyback

Hello experts I have fund for 20 shares and have 8 demat account
1.should I buy 2-3 in each demat or
2. buy 1 in each demat rest buy 1 in all accounts
Which of them is good and have better chance to get accepted maximum shares

TCS Buyback

Heard 1 share will be accepted for each shareholder. That means but 1 each in 7 accounts giving 100%ar. Buy the rest in 1 account.

TCS Buyback

yes 1 share will be accepted if 1 share held on record date and tendered.
From 2, 1 may be accepted and from 3 shares , 2 or 3 may be accepted, depends on AR. Better buy 1 share from each demat and rest all in 1 account.

TCS Buyback

Hello!
What is the record date for TCS buyback? Was it January 21? I read one article in Financial express which states the record date is January 21
Please help.

TCS Buyback

Thanks

TCS Buyback

ipo ji,

Since you and many members are recently asking the same query, Here is the recap for the benefit of all members new on this BB page :

a) 20 January 2022 was record date for payment of third interim dividend of Rs 7 per share. The dividend will be paid on 07 February 2022.

b) Currently E voting for buyback approval is going on (commenced on Jan 14) which will end on 12th Feb.

c) The results will be announced on February 15, 2022, consequently they will be announce record date.

MOIL Buyback

For Moil Ltd. I have 5000 shares of the Moil Ltd. And my entitlement for buyback offer is only 679 shares...
So what should I do? should I tender all 5000 shares in buyback offer or should I tender only 679 shares and sell the remaining shares in the market?

Is Government also participating in the buy back? (For the purpose of expected AR)
please guide Sir,
thank you

MOIL Buyback

You should tender all the shares to get the maximum benefit as AR is likely to be more than ER.

Yes, government is also participating in the buy back. Buy back and Dividend are two methods by which government gets some significant funds from its cash rich PSUs.

MPS Buyback

Anyone using Zerodha for buyback here?

I have tendered some shares for MPS yesterday, but in zerodha it is still showing pending..
Is it normal? Or do we need to do anything else? I am first time doing this.

MPS Buyback

Found more details here -
https://support.zerodha.com/category/trading-and-markets/corporate-actions/buyback/articles/how-do-i-apply-for-buy-back

I think now just wait.

TCS Buyback

I have a 3 share of tcs , what is chance of acceptance?

TCS Buyback

2 or 3 will be accepted if you tender all 3 shares

TCS Buyback

Can someone tell if Prostocks provide facility to tender shares in buyback?

TCS Buyback

Thanks @NKJ for informing. I couldn't got time today to call them and check.
Tomorrow i will try. Previously in Zerodha also, it was similar way, we need to send mail for buyback tender. Later they added this in their site itself for placing buyback orders.

TCS Buyback

Thanks @nkj and Lokes,
Yes, I also got a chance to call prostocks and they told me same.

TCS Buyback

Can someone confirm to me if we can place buyback orders without POA? I have been using edis for selling shares but this would be my first buyback.

TCS Buyback

sorry, no idea about hdfc securities

TCS Buyback

No

TCS Buyback

@KSRK SIR @LOKES

as a retail investor, how many shares have to buy from market

44 or 52 approximately?

Can you guide us

TCS Buyback

It is safe to go with 44. The criteria is as on record date ,the holding shares shares should be less than 2lakhs eg if stock price is 4000 on record date you can buy 50 shares. I would suggest you to go with 44.

TCS Buyback

Thq Very much

bought 44 @3774

if any more further drops, will add in future

TCS Buyback

Tcs fresh buy 30 × 3749

TCS Buyback

What is the record date? Will I be eligible if I by today? Financial express says the record dats was January 20

TCS Buyback

Hello All,
I have one question with retail quota.
I have total 9 demat accounts with 5 different PAN.
Now I am purchasing 45 shares in all 9 demat accounts to eligible myself for retail quota.
So whether I am eligible for all 9 demat accounts or only 5 with different PAN is eligible for this buyback?

Any help will be highly appreciated.

TCS Buyback

PAN wise
So category may change from retail to general for some cases.

TCS Buyback

@anchal: That 2 lakh retail category is applicable per person means per PAN. Any person can have many demat account and shares in multiple accounts so all those will be combined. Better to buy in 5 demat accounts only with different PAN.

TCS Buyback

Sir
I have 200 share of tcs before record date bayback 2022.kya retail category m tender kare ya general category m kaise adhik profit hoga
General category m ya retail category m kya difference h please explain me in full detail

TCS Buyback

In retail category(total price less than 2 lac) chances may be about 3 to5 times more than general category depending on the ground situation. So if AR in retail is 60% (about 27 acceptance out of 45 to 47 shares ), in your category AR may be 12% to 20% hence acceptance of 24 to 40 shares.
You may tender all 200 shares to maximise the acceptance.
If you want to participate as a retailer , you are to sell about 155 shares before ex date. Now, Nasdaq is under pressure, so are the IT shares. So you can not sell at this point at good price. You will get atleast 20 days time to take decision in this matter.If the price goes beyond 4100, you may think for selling to enter in retail category and subsequent reentry at lower price once buyback date is over.
If you are a very long term investor, you may do anything you like.

MOIL Buyback

Respected all members
Just received mail from registrar for MOIL buyback. Entitlement 196 out of 1000. Regards

MOIL Buyback

@coldburger: yes, booking profits is good habit when market is at high levels, thats why i informed you to keep stoploss in federal bank so that your profit is protected in case if the trend reverses. ya all shares like TCS etc went down due to unfavorable market in last 1 week. Andi feel MOIL also may not cross 180 till buyback period ends until some positive surprise by market or quarterly result.

MOIL Buyback

@lokesh
On the long term holdings there is another view point that even, if capital gains are exempted up to the prices quoting as on 31 Jan 2018, it's better to tender as many as get accepted and seize the opportunity to take full capital gains benefit as on date. With indexes moving by 80% after 31st Jan 2018, and share prices soaring capital gains beyond 31st Jan is also big. Buy Back exempts gains before and after 31st Jan 2018 as well. Buying back the accepted same number of shares post buy back at current levels obviously will not attract benefits of 31st Jan 2018. However, shares bought back at current levels though are not exempted, their prices many times are unlikely to move in the same proportion as they moved past 15 years in linear graph. Take the very example of Ajanta Pharma. Their shares went up by 3 X before the last buy back. On Tendering in last buy back purchased back those shares. Those shares have moved up so far only 20% up to now. So each one has to see his own holding price, period and decide.