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.
What are the buyback rules for joint holding demat account? For retail investor category holding in joint account will be counted for all holders or First holder only?
Tcs के bayback में Retail catagory में शामिल होने के लिए रूपए 4500 प्रति शेयर की कीमत से गणना होगी या जिस दिन शेयर टेन्डर कर रहे हैं उस दिन की कीमत या बाजार भाव से गणना होगी मेरा सबाल है किretail category. में 44 शेयर ही tender होंगे या उस दिन के बाजार भाव से शेयर की संख्या ज्यादा भी हो सकती है, दो लाख रुपए तक की सीमा में कौन सा मूल्य की गणना होगी
इन दोनों में से कोई नहीं. 23 फरवरी (रिकॉर्ड डेट) को शेयर की कीमत के आधार पर रिटेल श्रेणी की गणना की जाएगी. उदाहरण के तौर पर, अगर आपके पास 23 तारीख को ५० शेयर हैं और शेयर कीमत 3900 है तो आप retail में माने जाएंगे.
आप कितने शेयर टेंडर करते हैं इससे कोई मतलब नहीं है. जैसा कि मैंने पहले बताया, आपके पास रिकॉर्ड डेट को कितने शेयर हैं, उसके आधार पर आप की श्रेणी (retail या general ) निर्धारित होगी.
अगर रिकॉर्ड डेट को आपके पास 100 शेयर हैं तो आप general श्रेणी में आयेंगे।
Can I sell my shares on the record date or a day before, to minimise any potential downside risk , and still get considered for tendering with the plan of buying them back when the offer opens. Or should I keep them until one day after the record date? Experts kindly answer, any other rookie feedback is also welcomed in same regard
if your broker will debit shares on same day or next day from your account, then you will not be eligible so you can discuss regarding this with your broker and accordingly you can decide. Definitely don't sell one day before record date to avoid any risk, and regarding selling on record date, you may be eligible but still better to check with your broker once.
you will get mail from tcs in around two weeks after record date, then buyback dates will be mentioned, then you can tender your shares in buyback during buyback period from your broker site. For zerodha , you can check below link how to place order, for other broker, you can call and check with them how to place order for buyback. https://support.zerodha.com/category/trading-and-markets/corporate-actions/articles/how-do-i-apply-for-buy-back
you can call your stock broker, he can place order for buyback once the buyback will open, you will get mail with the buyback dates and you can come to know from here also
Hello all .. last date of settlment for buyback is 21st feb..is it mean that the shares which are not accepted for bb will return to demat on that day? and so we will get 3rps dividend as the record date is 26?
With 50 shares, as long as share price is below 4,000 on record date, you can participate in Retail Category. If prices goes higher, it will be general category.
@KAMMA SIVA SIR, AFTER RECORD TCS KA PRICE KITNE TAK NICHE JA SAKTA HE BECAUSE EARLIER IN STAR CEMENT AFETR INVETMENT OF RS.100000 I HAVE NOTHING ON HAND (PROFIT OF ACCEPATNCE SHARE-UNACCEPTED SHARE PRICE VERY MUCH CORRECTED=1000/2000 PROFIT)
HSM ji, CMP is around Rs.3725/- n the buyback price is Rs. 4500/-. You can purchase at the CMP and the unaccepted shares after the buyback may have to be hold for some time to get a better price. TCS is a reasonably reliable company which may not disappointment the investors. Each and every company is not similar to the STAR CEMENTS.
This question would be a repetition for you and sorry for that.i am new to buyback Based on your experience please share you thoughts How much shares can i expect tcs to buyback (if i have 44 shares) and rest of the shares at what price i can sell in open market. when can i expect this buy back to get over(ie this whole procedure and getting money in my bank account).
TCS is long term portfolio stock, most of the time it has reached to its buyback value,. and many share holders didnt apply for buyback as this is a long term stock for them
412.2. KAMMA SIVA RAMA KRISHNA1|| Link|February 14, 2022 10:11:35 AM
@KAMMA SIVA RAMA KRISHNA sir, @lokes sir Can you please share the strategy for selling the returned shares of MOIL. Should we keep them till 26th February. MOIL Q3 result is good.
@rahulagg : yes you can hold till dividend record date or even later....results were very good....but better keep stoploss also after record date, means sell the remaining shares if prices going below 180 around....since many recent buyback shares went down a lot after buyback is over and then buyback profit may go away or will become less due to remaining shares loss.
411.3. rahulagg|| Link|February 14, 2022 11:45:57 AM
@prace: good info at one place....appreciate it... And just mentioning one simple thing also: stock to be purchased 2 working days before record date to be eligible for buyback....
Hello guys I am a newbie in the market I dont know what exactly a buyback is Could any expert pls explain it and if it is profitable for a small investor?
Buyback particulars of MAYUR UNIQUOTERS LTD: Size of the buyback: 6,25,000 shares in all Mode of the buyback: Tender Offer Buyback price: Rs.650/- Record Date: 23/02/2022 CMP: Rs.476/-
As the size of the buyback is not a big one, one may purchase 100 to 150 shares for tendering in the buyback. Thank you n all the best to all of you.
@K.Atar : in all these new small buybacks, if anyone wants to enter, then better don't buy for full retail amount, as all these shares had good run up in last 1-2 years and after record date and after buyback they can fall more so if anyone wants to enter then better try with around 100 shares approx means around with 50K capital instead of trying with full 2 lakh capital. They can have lesser AR around 15% to 35% approx in retail due to smaller size of buybacks.
TCS Buyback
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?!