Yes you can .But buyback entitlement means minimum that shares will be 100% accepted Means in your case minimum 4 shares will be accepted .But considering previous Buyback of TCS 100% shares accepted in buyback So there are high chances of more than 4 shares get accepted.
So its âyesâ for both a and b? So, the above is just a confirmed number of shares in buyback but TCS can buy all of my 25 shares as well?
What was the âBuyback Entitlement in terms of no. of Equity Sharesâ for last buy backs?
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I just received the same mail regarding the buyback from ( [email protected])
Now my doubt is that should I fill that form given in the mail or there will be some option coming under Zerodhaâs console â corporate actions tab?
Also, under the column: âBuyback Entitlement in terms of no. of Equity Sharesâ only some shares letâs say âxâ are mentioned, that means, even if I sell all my shares I will be getting a maximum of x shares?
It will show up in console inside corporate actions>buyback section on or before March 9th till March 23, at least.
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Option to tender shares will be available on Console once buyback opens on March 9. You donât have to fill the form 
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Suppose on record date I had shares in other broker demat account , do i need to tender from same broker or can I buy in other broker and tender ?
thankyou
thankyou Shubh
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Same broker.
In TCS 2018 & 2020 buybacks, the entitlement was around 40% and 44%, respectively, for the retail category. The acceptance was 100% in both the cases.
But for the current one, entitlement is just 14%. That means, the no. of shares with the retail category has gone up by about 3 times, compared to the previous times.
Yes, there is lot more participation amongst retailer and also awareness about buyback is very high.
Concluding this directly from Entitlement ratio is not correct because buyback sizes for all 3 is not constant, especially on number of share. In fact, number of shares being bought back has reduced from 2018 to 2022.
2018 - 7.61 crore shares
2020 - 5.33 crore shares
2022 - 4 crore shares
Letter of offer for each buyback does give out retail share data for each buyback. Here is collated data:
| Buyback Year | No. of retail share holders | No. of shares held |
|---|---|---|
| 2018 | 592,509 | 25,511,425 |
| 2020 | 801,794 | 19,488,544 |
| 2022 | 2,110,826 | 41,051,350 |
So from 2018 to 2022, no. of retail shareholders have almost gone 3.5 times, but no. of shares held has only increased by 60% or so.
Also, definition of retail is based on amount and not no. of shares. So someone who was holding 99 shares in 2018 would have qualified as retail shareholder. Same person (if they havenât sold anything in between) will not qualify as retail today.
One of the main reason for 100% acceptance in last two offers was because by the time tendering window closed, market price of TCS was very close to buyback price (2100 in 2018 and 3000 in 2020). So there was no real arbitrage in applying in buyback and hence lot of people simply didnât apply for buyback. (or sold in market if they wanted money)
This time, that is not the case as buyback price is almost 20% higher than market price and the way market is behaving, it doesnât look like this gap will narrow. So in all probability there would be much higher participation and acceptance ratio much lower than 100%
I feel, this time it would be less than 50%, but I could be wrong 
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A non related question.
Which is better for the shareholders of tcs.
Tender buyback or open market buy back or both are the same.
If tcs had opted for market linked, they would have got the time to buy back the shares from the market at lower prices than 4500 wont that be beneficial to the shareholders in the long run
In tender buy back, I have read many retail investors are buying the shares only for the buyback.
Since there is no capital gain, I feel the biggest beneficiary is the promoters who hold large quantity of shares and they get the money without paying taxes. Whereas in a market buy back, the promoters had to offer the shares at market linked prices
Infosys had done a similar exercise in 2021 which was market buy back.
Disl. This post could be a result of âthe grapes are sourâ feeling as I hold 66 shares but TCS did not even approve one single share from my lot and to rub it in, they send me a email as well.
Depends on which shareholder you are asking and also what is companies intent behind buyback.
Buyback serves two purposes - return money to shareholder (similar to dividend) and improve future earniengs and returns to shareholder (as number of shares goes down)
In case of TCS primary motive is to return money to shareholder and since buyback is more tax efficient than dividend they are regularly opting for a buyback every 2 years.
This ensures Tata sons gets a good chunk of cash in one shot in a tax efficient way. (and they really need this money for their other businesses)
This is also beneficial for retail shareholders as they get slightly higher proportion and tax free return of money.
Also this ensures all shareholders get proportionate return of money (well almost all except few unlucky ones)
Market buybacks are done generally when management feels that company is undervalued in market. In that case company resorts to market linked buyback where company buys back share over a year or so and this provides support to stock price.
Also, here no money is actually returned to shareholders, but yes shareholders gain over long term as number of outstanding shares go down.
Well frankly if you are long term investor this really shouldnât bother you as you are still gaining as number of shares post buyback will go down and your effective ownership in company will increase.
Beside even letâs say you had a entitlement of 1 share. You would have made a theoretical gain of 900 rs. by participating in buyback. Would that have changed your life in anyways?
If even this does not make you happy, let me share my story of 2020 buyback.
I had few shares (worth less than 2 lakh - retail) which I tendered with a thought that whatever gets accepted, I will buy it back from market and lock some tax free gains.
By the time process ended actual acceptance came at 100% so all my shares were accepted at 3000 but by that time TCS price had crossed 3000 and kept on increasing, and I never got a chance to buy my shares back. Today it is hovering around 3600 and there is another buyback at 4500.
So you think I was lucky to get 100% acceptance or I was the unlucky one? 
Hope this lessens the pain
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Thanks for the detailed analysis. Initially wondering where the data was available!
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Hi All,
For Example an X user holds 10 stocks in Zerodha and 10 Stocks in Kotak will he be eligible for Buyback with both the brokers.
In companyâs letter the offer opening to closing date range was 2022-03-09 to 2022-03-23; but in console, why is it showing 2022-03-08 to 2022-03-16.
Can anybody from Zerodha team explain itâŚ
After submitting the order on CONSOLE for Buy back, By when i need to submit the TPIN verification ?
It should ask for TPIN verification when you hit place order. I just put my bid.
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Owing to the large number of client applications anticipated for TCS buyback, the orders will be placed on the exchange starting 17th March 2022 until the closure on 23rd March 2022 for the orders collected until then. Another window will be opened for buyback between 16th until 23rd March.
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Youâll get promoted to authorize when you place the bid.
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