Infosys Buyback offer. What are the buyback offer details? and how do I participate in it?
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Notice: 30 Oct 2017, is the last day to buy Infosys shares to be eligible for the buyback. Shares bought 31 Oct 2017 onwards will not be eligible for the buyback.
Update: 1 Nov 2017 is the Record date for determining the eligibility of shareholders for the Infosys Buyback offer. What this means is that the shareholders will be eligible for the buyback if they have Infosys shares in their Demat account as of 1 Nov 2017. After the list of eligible shareholders is determined on 1 Nov, a Letter of Offer/Tender form will be sent to the registered email ids of the entire list. Please note that 31 Oct 2017 is the Ex-date and the last date to buy the shares to be eligible for the buyback offer is 30 Oct 2017 as it takes 2 days for the shares to be credited to your Demat account.
Here are the offer details: The Company proposes to Buyback shares of up to Rs 13,000 crore, or 4.92 per cent of the equity share capital, from investors at Rs 1,150 per share.
The Buyback will be executed via the Tender offer route. SEBI mandates that 15% of the total Buyback size has to be kept aside for retails investors(those holding shares worth up to Rs 2 lakh on the record date), which means Infy will have to set aside Rs 1,950 crore to buy shares from retail investors.
If you are an eligible shareholder of Infosys as of the buyback record date, then you will receive a Tender form to your registered email id from the Company’s RTA(Registrar and Transfer agents). The primary detail you need to fill in the form is the number of shares offered by you for the Buyback. An image of this portion of a typical tender form is shown below -
You can place a Bid for a minimum of 1 share to a maximum of the number of shares in your holding as of Record date. You’ll have to mention the number of shares you wish to tender/offer in the Buyback tender form and send a softcopy of this tender form in an email to ‘[email protected]’.
Zerodha will transfer your offered shares to the RTA and will place your bid for the buyback. A Transaction Registration Slip(TRS) will be sent to you by Zerodha after placement of your bid which will include your bid details including bid quantity, bid rate and bid value. After allotment, if there are shares of yours in excess of eligible Buyback entitlement, the excess shares will be transferred back to your Demat account by the RTA.
The allotted Buyback amount will be credited directly to your bank account by the company’s RTA.
New procedure to tender shares at Zerodha for the buyback:
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Here is the details about buyback, gives you a good insight on Infosys BuyBack offer.
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Do one need to send signed DIS to you along with the Tender form and what if tender form is not received by investor either by email or by post.
No you dont have to send us a DIS, soft copy of the tender form will do. If you have not received the tender form and you are sure that you are eligible because you held the stock as on record date. You could download a tender form online, fill the details and email us the copy to participate in buyback offer.
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I have pledged my shares to Zerodha. Will I still get the offer to participate in buyback ? Or do I need to unpledge them before record date to be eligible .
You need to unpledge the shares and hold them in your demat as of the record date.
Sir
i have 117 shares of Infy but it is in Brocker DP ID
so hav i eligible for Buyback please suggest
To be eligible for the buyback you need to have shares in your demat as of November 1st which is the record date.
As shown in above image, if I want to tender all the shares for buyback, can I enter 75 against shares offered for buyback? Or do I need to enter only 33 Or is it additional shares (75-33=42)? Could you please explain in detail last row which is ‘Number of Equity Shares offered for buyback (Including Additional Shares)’?
Hi, I have 100 shares how many shares i can tender for buyback? Also what date I will receive the email?
Just to confirm, this is only an example of a tender form and is not the Infosys tender form. That being said, Infosys will calculate the ‘number of equity shares entitled for buyback’ based on the number of equity shares you hold and this will be mentioned in your tender form like above.
Let’s take the above numbers itself for an example:
Number of equity shares held on record date: 75
Number of equity shares entitled for buyback: 33
Number of equity shares offered for buyback:
Here you can enter any number from 1 to 75. If you enter any number from 1 to 33, it will be compulsorily bought back by Infosys as you are entitled to it. You can also enter a number between 34 to 75. These additional shares that you hold may or may not be bought back depending on the number of people applying for the buyback. Say you enter 75 shares for buyback, here 33 will be compulsorily bought back and any extent of the additional shares eligible for the buyback will depend on the number of people applying and the number of shares Infy are allowed to buyback.
You can enter the entire 100 shares for buyback but the number of shares you are entitled to for compulsory buyback will be mentioned in your tender form only.
You’ll receive the tender form via email only after the record date of 1 Nov 2017.
One of My friend brought Infy Share few days back Just for This Buyback Offer.
I suggested him not to do this.
He will be eligible for Buyback?
Yes, he will be eligible for the buyback offer.
As mentioned in the post,
‘Please note that 31 Oct 2017 is the Ex-date and the last date to buy the shares to be eligible for the buyback offer is 30 Oct 2017 as it takes 2 days for the shares to be credited to your Demat account.’
So all shares bought on or before 30 Oct 2017 will be eligible for buyback.
What is the timeline of the buyback? When will the basis of buyback be announced and when will the bought back shares be settled?
Do we still need to pay 15% tax for the buy back amount, as this comes under short term gain.
For how many days approximately we need to keep Infosys shares in demat account without selling after November 1st, inorder to get the buyback amount.
what does including additonal shares mean in this form?
After Record Date , how much time company usually give to tender the shares