Infosys Technologies

ramkasi

Active member
#63
sachinjee, if I have 100 shares of infy, how many I can sell in buyback offer?

Request to comment on this buyback process in detail, thank you.
 

Alchemist

Administrator
Staff member
#64
sachinjee, if I have 100 shares of Infy, how many I can sell in buyback offer?

Request to comment on this buyback process in detail, thank you.
You should tender all shares. Retail acceptance ratio will be less than 20%.

Who is your broker? Please check in advance whether the broker can transfer the share online for the buyback?

If not, keep your DIS booklet ready.
 

paran

Active member
#65
What do you think from business perspective?

Do you feel is it worth to invest it at this point of time, say time frame is 1~2 years?

Expectation is 15% return per annum.
 

ramkasi

Active member
#67
You should tender all shares. Retail acceptance ratio will be less than 20%.

Who is your broker? Please check in advance whether the broker can transfer the share online for the buyback?

If not, keep your DIS booklet ready.
My broker is Karvy.

DIS BOOKLET .... heard about it after few years, I forgot about it a few years back, I need to check where I kept that.
 
#69
You should tender all shares. Retail acceptance ratio will be less than 20%.

Who is your broker? Please check in advance whether the broker can transfer the share online for the buyback?

If not, keep your DIS booklet ready.
How do you calculate retail acceptance ratio? Most of the website are claiming acceptance ratio to be around 60%.
 

Alchemist

Administrator
Staff member
#70
How do you calculate retail acceptance ratio? Most of the website are claiming acceptance ratio to be around 60%.
I made a mistake in my earlier post.

SEBI has kept a mandatory 15 per cent reservation for small retail investors in buyback offers.

I didn't consider that in my earlier post.

A very large proportion of retail investors don't tender their shares and so the final ratio for retail investors is higher than what would have been if everyone had tendered.

The final ratio cannot be calculated. It will only be known after the buyback is over.

I need to study Infosys case a bit. I will update in 1-2 days.
 

Alchemist

Administrator
Staff member
#71
Most of the website are claiming acceptance ratio to be around 60%.
60% is just a calculated guess.

There are a couple of reports on the internet that mention this 60% number.

According to the company’s filings, 2.87 crore Infosys shares were with investors holding 200 shares or less as of March 31. If we assume a price of Rs 1,000 on the record date for Infosys, the value of the shares held by these investors will be Rs 2 lakh or less, qualifying them as retail investors.
https://www.bloombergquint.com/mark...-investors-need-to-know-about-infosys-buyback

I am not sure where they got this data from because the data on NSE's website shows how many shareholders have shares of nominal capital up to Rs 2 lac and not value Rs 2 lac.

Whatever be the figure, I think the acceptance ratio will be pretty high.

Recent buybacks of companies like Wipro Ltd., Bharti Infratel Ltd., Mphasis Ltd. and Tata Consultancy Services Ltd. saw an acceptance ratio of 100 percent – which means all the shares tendered were accepted. One of the reasons could be lower participation or many investors not opting for the share buyback.
Only risk here is that share price may go down after the buyback is over. If the price goes down sharply, for some reason, those playing for arbitrage will end up with losses.
 
#72
60% is just a calculated guess.

There are a couple of reports on the internet that mention this 60% number.

https://www.bloombergquint.com/mark...-investors-need-to-know-about-infosys-buyback

I am not sure where they got this data from because the data on NSE's website shows how many shareholders have shares of nominal capital up to Rs 2 lac and not value Rs 2 lac.

Whatever be the figure, I think the acceptance ratio will be pretty high.

Only risk here is that share price may go down after the buyback is over. If the price goes down sharply, for some reason, those playing for arbitrage will end up with losses.
You can get shareholding pattern in their Annual report. My guess is, Acceptance ratio may actually go down to 50% because of latest enthu all retailers are showing and media coverage.

In the MindTree buyback retail actually lost money due to this.
 

Alchemist

Administrator
Staff member
#73
You can get shareholding pattern in their Annual report. My guess is, Acceptance ratio may actually go down to 50% because of latest enthu all retailers are showing and media coverage.

In the MindTree buyback retail actually lost money due to this.
Yes, you are right. The breakup is available in the annual report.

What was the final acceptance ratio in case of Mindtree?
 
#74
Yes, you are right. The breakup is available in the annual report.

What was the final acceptance ratio in case of Mindtree?
Retail portion received response of 709% so for each 7 shares submitted only 1 got accepted. Moreover the price went down significantly once the buyback process got over. So net net...huge loss incurred by retail guys. Only promoters encahsed their portion nicely.
 
#75
You can get shareholding pattern in their Annual report. My guess is, Acceptance ratio may actually go down to 50% because of latest enthu all retailers are showing and media coverage.

In the MindTree buyback retail actually lost money due to this.
Acceptance of 50%, and current price of 930ish... I think loss will happen only if post buyback prices go till 650ish types, right?
 
#78
If we buy it today at 930/-, acceptance gets at 30%, and post buyback prices drops to Rs 830/-, even then it comes out to break-even.
Yes, as long as terms are favorable and things remain the same, we can calculate and be happy. In MindTree case, we hadn't even thought it will go that much over subscription. Anyway, that's the game, if something looks too easy and too lucrative, wait and analyze some more.
 

San Yad

Active member
#79
What is the procedure to tender shares for buyback?

Can we do it online by banks or trading terminal/brokers?

What is the procedure?

Or its physical form and then apply?

Happy Investing!
 

Alchemist

Administrator
Staff member
#80
What is the procedure to tender shares for buyback?

Can we do it online by banks or trading terminal/brokers?

What is the procedure?

Or its physical form and then apply?

Happy Investing!
Who is your broker? Some brokers have online option.

Otherwise one has to transfer shares to escrow account and send a form to the company.
 
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