If i wish to sell more than entitilement shares in HDFCSEC how do i apply please guide, my RM has sent this message : Pls apply only Entitlement quantity in a 1st bid or Single Bid. If you want to apply more, place 2nd Bid & apply remaining quantity.Is it correct ?
@lokes sir, can you please share the strategy for the unaccepted shares as Acceptance Ratio will be less. In how many days can we expect TCS share price near about Rs.4000.
it all depends on market movement also....but i think no need to worry in TCS, you may need to wait if market doesn't perform well in near future but in 1-2 months max, it should cross 4000 or may be much early also if some positive global news. Better to hold and sell around 3900-4000 since average buy price will be around 3750-3900 for most people who bought for buyback purpose.
ya its normal, in zerodha they normally block the shares on last day of buyback. Here in tcs, they are accepting buyback orders in 2 parts as informed in older message....so they may block your shares on 16th march may be.
hello, i have one query . Before record date i had 28 shares , after record date i bought 1 share. in buyback application i applied for 29, is that any problem ?? please guide!!!
I called zerodha and they mentioned that last date of buyback of 16 th march but I check from linkin time email where mention is that 23rd march last date for tcs buyback so anyone can clarify on this matter???
Thanks for ur valuable time..
638.1. Vibhor Saxena|| Link|March 9, 2022 11:17:13 AM
we can tender later also again in zerodha for tcs....upto 23rd march 1.30pm..... https://console.zerodha.com/portfolio/corporate-action-order-window
The TCS buyback orders will be collected between March 8, 2022 and March 23, 2022. While you see the offer end date as March 16, we will reopen the order window on the 16th until March 23.
@experts, I have 20 shares in my account, so I'm entitled to 2 shares for buyback.
However, what would be the good strategy of tendering? Shall I tender all my 20 shares or may be 10 shares? So that, if price goes high during the tendering I can sell the remaining shares that are not tendered. Please suggest.
I think tendering 50% i.e 10 shares in your case will be ideal as AR is expected to be around 30% and it is surely going to be less than 50% to be on safe side. Also try to wait till last few days of tendering close so that youโll not miss any chance of increasing probability of seeing share price for more days. Iโm no expert so itโs just my analysis
I believe benefit of highe AR will proportional to the share submitted. Submitting 10 will have different AR for the user than submitting 20 for same user. @lokes @ksrk sir and other experts please guide.
@coldโฆif AR 30%, how many shares will be accepted if tendered 10 and if tendered all 20? I thought itโll be 3 shares in both cases and so suggested to tender 10
@KAMMA SIVA RAMA KRISHNA, I would love to hear your thoughts as well on this, since you're a pretty much expert in this buyback territory. Please sir enlighten us on this, what should be the best strategy one could follow while tendering the shares.
@sdj I wrote wrong that AR will be different for user. I mean to say if AR is 30% then submitting all 20 will result in 6 accepted and if 10 submitted then 3 will be accepted. It will be not the case that since on record date 20 were held so 6 will be accepted out of 10. Only ER is confirmed AR benefit will be proportional to number of shares submitted.
AR is individual specific and there is nothing like a fixed AR for all investors.
Best AR will be for the investor who is able to estimate how many additional shares (above entitlement) will be accepted and submits the shares accordingly. Any error in estimation will lead to losses. If one estimates AR higher then he will be left with additional shares which will at the mercy of market. If one estimates AR lower then he carries the risk of lesser no of shares accepted in buyback than could have potentially accepted.
It all depends on the ability and skills of the individual for taking the right call. If one believes that TCS shares will give acceptable upside in a reasonable time frame then he should submit all his shares. If one believes that TCS shares will not give acceptable upside in a reasonable time frame then he can submit lesser shares in buyback and sell remaining in the open market............It is an individual decision which can go either way............optimal or sub-optimal
@techuser I too missing the valuable and encouraging posts from @ksrk sir. But he has taken some time off for his personal requirement and we should honor that decision. I just pray the personal time is meant for some positive development or plan๐
@ColdBurger, Thank you for your valuable insights into how buyback works and how one should take decision while tendering the shares, it really helps. This is the best from your side: "Best AR will be for the investor who is able to estimate how many additional shares (above entitlement) will be accepted and submits the shares accordingly.". For a newbie like me and first time buyback participant, it's going to be a complete Jugad :).
@ColdBurger, yes I agree with you, we should honor his decision, and let him be in his own personal space for the time being.
Accepting ratio will be depending on how many extra shares tendered than ER.
So better to tender 20 shares so maximum of them will be accepted and remaining will be returned if you wish to hold for long term( you can buyback from market for less than 4500 after amount comes into your account as 20% rally within next 15-20 days is not a happening scenario as per my understanding.
with current market price , it make sense to tender all shares rather than tendering part of holding.
@AashishโฆJust answer us this question for the sake of entire group pleaseee.
Holding 20 shares on record date and ER is 2 shares. if final AR come to be 30%, how many shares will be accepted if tendered 10 and how many if tendered all 20? I think itโll be 6 shares in both cases. If AR is 40%, then itโll be 8 shares in both cases. If AR is 50%, then itโll be 10 acceptance in both cases.
@GJ.. Thanks for the explanation with numbers. Have a doubt..holding 50 shares and ER is 7 and if AR is 30%, how many shares will be accepted if 10 shares tendered, if 20 & if 50? Will 3, 6 & 15 shares be accepted?
Can AR be less than ER even though tendered more than ER shares. Is ER just a ratio to show what %age of shares theyโrebuying? Thanks in advance
@sdj Given you have submitted the number of shares in ER then that is for sure will be accepted. ER cannot be less than AR unless one submitted less than ER quantity. AR plays role above ER. First all ER shares will be accepted and then the remaining shares will accepted based on AR percentage. I am giving overview and not actual computation.
If AR is 30%, the simple formula is number of accepted shares => larger number from, 1. 30% of the tendered share 2. ER number (or number of tendered shares if it is less than ER)
1. Tender 10 shares, 7 will be accepted larger number from 30% of 10 is "3" and "7") =>7
2. 20 => 7 (larger number from 30% of 20 is "6" and "7") 3. 50 => 15 (larger number from 30% of 50 is "15" and "7") 4. Tender 6 shares, 6 will be accepted larger number from 30% of 6 is "2" and "6") =>6
AR can not be less than ER. Yes, ER is like a company for sure will take those number of shares from you if you tender.
Bigger example, Let's say there are 10 shareholders with 20 shares each in their holdings, and ER is 15%. This means the company wants to buy 10*20*0.15=>30 shares in total, 3 from each shareholder. But 50% of shareholders don't tender their shares in the process. Then the AR will be 30%. Why? Because now the company has to buy 6 shares from these 5 remaining shareholders to achieve the target of 30 shares in total 30/5 => 6 from each 6 accepted /20 holding per shareholder => 30% AR
So you see, AR is generally more than ER as some shareholders don't tender their shares and keep these for the long term. But while calculating ER, the company is not sure about these kinds of long-term investors and considers them for buyback and overall ER comes down but overall AR is always higher.
I am also new to buyback. Whatever I am saying is from a little bit of study and analysis.
If you read on the top of this page, https://console.zerodha.com/portfolio/corporate-action-order-window
There is a note specifically for what you asked, "The TCS buyback orders will be collected between March 8, 2022 and March 23, 2022. While you see the offer end date as March 16, we will reopen the order window on the 16th until March 23."
@sdj: Thanks for reminding 16 is the date shown on Zerodha which is weird given EX Date is 22nd March. Zerodha asks to submit one day before the issue close daya but in this case it 7 days advance.. cannot digest ..must be some reason and need to know that. @AmitKSingh, @Lokes please enlighten us..
ER+factor less than ARรAdditional shares submitted =Accepted shares If AR is 30% , the factor may be around 20%.Assume total shares 50 If submit 10 shares 7+0.20(10-7)=7.6= 7 If submit 20 shares 7+0.20(20-7)=9.8= 9 If submit 50 shares 7+0.20(50-7) =15.4=15 wil be Accepted
Final AR is applicable on all quantities held on record date and tendered. So it will be same for everyone only when they are tendering all their shares, unlike ER , which is same for everyone. But obviously more the shares you will tender, more will be accepted so always better to tender all shares held on record date.
Additional Ratio, will be known once AR comes out, can be calculated from someone who has tendered all shares held on record date. Additional Ratio = (Accepted shares - Entitled shares) / (total shares - Entitled shares) Additional Shares= Additional Ratio ร (shares tender - entitled shares) Accepted shares = Entitlement shares + Additional shares
Taking general example (not for TCS): if someone Holding 100 shares on record date, and Entitled shares are: 20 and AR comes out as 50% means 50 shares are accepted when 100 shares tendered. So additional ratio is: 30/80 = 37.5% so if someone tendering 50 shares suppose then additional shares = 11(round figure) so final accepted shares = 31, means 62% will be accepted out of 50 shares tendered. So AR for him will be more obviously but no. of accepted shares count will be less obviously if he tenders less shares from what he held on record date.
I have query for TCS Buyback on Angelbroking. I got the mail from TCS but confused what's meaning of this.
No. Of Equity Shared held by you on record date :- 60 Buyback Entailment in terms of no of equity shares :- 0
Also, I did not get any mail from angel broking for buyback.
What to do ?
Details of Equity Shares held and tendered/offered in the Buyback: In Figures In Words Number of Equity Shares held as on the Record Date (February 23, 2022) 60 SIXTY ONLY Number of Equity Shares Entitled for Buyback (Buyback Entitlement) 0 ZERO ONLY Number of Equity Shares offered for Buyback
Sir I have 45 TCS share in 2 different dmat all holding us of before record date. Now what to do. Can I tender TCS share from both DMat account. Thanks in advance for reply.
If you have two dmat a/ c in your name, you will have to tender all 45 from either of the demat (not from both) as pan no is the identification criteria.
Call their helpline number 022-68545555 (Monday to Friday). It is sad that they are not providing this service through their site. Last time, 5-6 years back, I had to go through the same process. Call them, ask them how to tender shares and then they will tell you.
TCS Buyback
If i wish to sell more than entitilement shares in HDFCSEC how do i apply please guide, my RM has sent this message : Pls apply only Entitlement quantity in a 1st bid or Single Bid. If you want to apply more, place 2nd Bid & apply remaining quantity.Is it correct ?