@Investwise you brought up an interesting point.
So I did some digging on my own and went through the shareholding pattern of Infy ( from their website) for the last few quarters. Based on those details,
- As of Mar 31 2017, no. of shares with non-institutional investors i.e. Individuals with share capital upto Rs. 2 Lacs - 14.18 crores approx
- As of Sep 30 2017, no. of shares with non-institutional investors i.e. Individuals with share capital upto Rs. 2 Lacs - 16.33 crores approx
I am very sure this number would have further increased by Nov 1st the record date.
Per my understanding, Infy is gonna buy back only 2.1 crore shares ( based on the closing price of Nov 1st the record date) which works out to an entitlement ratio of just about 12.85% assuming every one of tenders his/her shares.
So all those reports which were published by Bloomberg, India-Infoline, Money controls etc. where they predicted an entitlement ratio of 59% - are they wrong?
Could anyone verify whether my understanding is correct?
If yes, then the bet that I took with buying Infy shares just for buy back doesn’t seem to be worth it…
Can any of the moderators, comment on it please ?
Thanks as always.