How do I participate in the Infosys Buyback offer?

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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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

Answered here.

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?

Yes, that’s correct. If the shares reflect in your Demat as of Nov 1, then you will be eligible for the buyback. If the shares are transferred to your Demat tomorrow, then it’ll reflect in your account at the end of the day.

Thanks for the response. Cheers !!

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Did anyone get mail to participate in Infosys buyback offer?

This has been discussed here.

Want to know from Zerodha as to what is the cutoff date for sending the scanned copy of the tender form to you for availing the buyback offer.

The cut-off date for participation in the buyback will be mentioned in the tender form. You have to ensure you send your tender form to Zerodha before this date so your buyback bid can be placed.

Hi Srinivas,
So if the entitlement ratio is 59 shares per person, then if I bid 20 shares at the max buyback price mentioned (1150 RS), then all my 20 shares will be bought for sure ??

Or I need to bid for some lower price than the maximum price to make my shares to be bought ??