I have Infosys share and I have buyed that before October still I didn’t receive the buyback form for the Infosys buyback offer
@Harshal1 Answered right above your question.
Nobody has received that yet. Kindly wait for an email.
Any idea whether Restricted Stock Units (RSUs) are eligible for this buyback offer?
@Highoctane, only those stocks which were in your Demat account on the record date(1 Nov) is eligible for buyback.
According to the latest infosys share holding pattern there are 13 cr shares with retail investors and only 1.9 crore of this will be brought back by Infosys. So only 10% will get accepted by Infosys on tendering. Thats way below projected 60% by the various media and news agencies.
As 10% will be accepted it will be wise to hold infosys for few more months. Infosys will easily cross 1200.
Well, we don’t know the acceptance ratio yet, which depends on how many of those 13 cr shares will be tendered back. The lesser the people who tender, the higher the acceptance ratio.
Do you expect the buyback process to be completed by November end . TCS did not take more than a month after the buy back cut off date. Please give me your opinion
@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.
Rakesh, you are not correct. 2lakhs capital means share at face vale ie Rs 5. Retail investor means number of stocks for value rs 2 lakhs at rs 945. Which stock holding pattern is not declared.
@Shankar_s That is what I was thinking, but still wrote the post to get a confirmation from some of the other boarders.
Thanks for clarifying.
So, in a nutshell, we will not know of the true entitlement ratio until we get the mail from Infy’s RTA for the eligible shareholders. Well, will keep my fingers crossed then…
Entitlement ratio has been released by Infosys.
The Buyback Entitlement for Small Shareholders is 28.39% and General category is 4.29%. Tender forms will be sent on or before Nov 23. The buyback windows opens on Nov 30 and closes on Dec 14.
@Roy Could you disclose the source of this information?
Here, is the Official Circular.
It’s a 77 Page detailed information by Infosys submitted to Exchange.
All the Details are provided Related to Buyback.
i have one query. consider that i had purchased infosys share of 50 nos long back and i sold them on 13 th nov 2017. as you mentioned that i shall be eligible if i am holding the shares on 1st nov2017. now my doubt is whether i can buy 50 shares once again on 20th nov2017 and participate in the buyback?
Is it good to participate in Buy Back of Infosys & How many months it Will take for Buy Back process to be completed with payments in gernal buy back situations?
Infosys’ Rs 13,000 cr buyback begins Nov 30, which closes on Dec 14, is for purchase of up to 113,043,478 shares, or 4.92% of paid-up capital, at Rs 1,150 per share.
means from this date the shareholder wil receive the mail for the buyback?