I bought Infosys share on 25th for buy back purpose.
Can i sold shares on 31st oct and will be eligible for buy back?
- What differentiates a retail and HNI investor is the holding value, as you’ve mentioned. If a shareholder has above 2 lacs worth of Infy shares as of Record date, then he is an HNI investor. The difference is the entitlement ratio which depends on the HNI shareholding pattern, the share price as on record date and the quota set aside for HNI investors which i’m unaware of.
- That’s correct. If you have Infy shares worth over 2 lacs as of Record date, then you are an HNI investor. If it’s less than 2 lacs, then you are a retail investor.
- Yes, to qualify as a retail investor to be eligible for the 15% retail quota, you have to ensure that your holding value in Infy is less than 2 lacs as of Record date of 1 Nov 2017. So you have to sell out the additional shares on 30 Oct or before to enable this.
Yes, hold the shares till 31 Oct 2017 and you’ll be eligible for the buyback.
Awesome… thanks for a lot for responses. I have been looking for this every where without getting the right response. Appreciate it 
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When exactly will the buyback happen. When can we expect to get the amount back in our accounts?
If I sell some stocks on Monday and get my holding below 200000 and assuming that the value doesn’t rise above 200000 till the record date, will I be eligible for the reserved 15% buyback category? Or should I sell them today to make this happen?
What is Zerodha? Is it really necessary to mediate between us shareholders and the company/registrar or we can participate in the buyback directly also?
I am having 100 shares of Infosys am I eligible to participate in buyback.
@Akash_Shukla, Yes, to qualify as a retail investor to be eligible for the 15% retail quota, you have to ensure that your holding value in Infy is less than 2 lacs as of Record date of 1 Nov 2017. So you have to sell out the additional shares on 30 Oct or before to enable this. So monday is the last day.
@Kedar_Shukla, Zerodha will place your buyback bid with the RTA and transfer your shares to the RTAs Demat. They will also generate a Transaction Registration Slip(TRS) consisting of your bid details and send it to you as proof of your participation in the buyback.
@Subramanian_S, Yes sir, you’re eligible for the buyback if you hold these 100 shares in your Demat till 31st Oct or after.
Notice: Today, 30 Oct 2017, is the last day to buy Infosys shares to be eligible for the buyback. Shares bought tomorrow onwards will not be eligible for the buyback.
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Hi,
If I tender my shares for buyback offer, lets say 100 shares, is it guarantee that all my 100 shares or pro rated 59 shares ( 59%) will be bought by Infosys. Want to know they will buy for sure from each share holder who offer buy back. Thanks.
Your buyback entitlement will be mentioned in your tender form based on the entitlement ratio. The entitlement ratio will be calculated based on the share price and retail shareholding pattern as on record date.
You are assured a buyback for your entitlement, but if you tender more shares than this, the acceptance ratio of the additional shares will be decided based on how many people apply for the buyback.
So taking your example, if you hold 100 shares and if your buyback entitlement is 59 shares, then Infy will buyback the 59 shares from you for sure. But if you tender more than 59 shares, then whether these additional shares will be accepted or not will depend on the number of people and the quantity they apply for in the buyback.
Infosys will decide on entitlement ratio based on number of shares in retail quota available for buyback (15% of total buyback) upon total number of shares held by retail customers. And it will arrive at a percentage.
Lets assume it comes to 50%. This is the minimum percentage that Infosys would buyback.
So even if all the retail investors participate in buyback, Infosys will buy 50 out of your 100 shares.
However not all retail investors would tender their shares. So acceptance ratio is usually above the entitlement ratio.
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Thank you Srinivas and Sandeep for clarification. Can I participate or tender my shares through online via online demat account ? without any physical or paper work ? I am abroad and so interested to know this please.
Hi Srinivas, you said it takes 2 days to credit the shares to the demat account and so should buy before 30-Oct-17. Is this the case explained for Online buying or physical buying ? would it take 2 days even if I buy shares through online via demat accounts like sharekhan or icicibank or zerodha ? Can I not buy tomorrow i.e on 31-Oct-17 online and will they not be available by record date 1 st nov in my demat account? Your quick reply will be appreciated please.
Yes sir, the process is completely online. You will receive a tender form to your registered email id after the record date. You can enter the number of shares you wish to tender and send a softcopy of this form to ‘[email protected]’. We’ll place the bid on your behalf. I’m assuming you are a Zerodha client.
Yes, the exchanges follow a T+2 rolling settlement cycle, so it takes 2 days for shares to come into Demat through online trading. Since your shares have to be in Demat on 1 Nov to be eligible for the buyback, 30 Oct was the last day to buy shares to be eligible for the buyback. Shares bought 31 Oct onwards will not be in Demat by 1 Nov and so will not be eligible for buyback.
when will we get the buy back tender application on registered email ? #infosysbuyback
Thanks a lot Srinivas for your valuable inputs. It is really helping out a lot of people. I had a query: i had bought infy shares on 27th oct. However, upon interacting with angel Broking representative today, I got to know that due to some technical glitches, the shares were not transferred to my demat a/c. There’re still in pool. However, he said he will transfer the shares to demat and they’ll get transferred by tomorrow morning i.e. 1st nov morning. Would i still be eligible for the buyback? The record time would be the closing on record date right?