Infosys have announced the buyback record date as 1st November 2017…as after the buyback their will be re rating of the stock price…how much the price of Infosys will correct after completion of buyback offer
Tricky question. This is almost equal to solving a complex mathematical problem.
As already the market price is well below the buyback price, price correction in Infy does not matter. Restructuring under Nilekani & Rupee depreciation wud help it to remain buoyant.
The main reason for raising this question is to know…as a retail investor can we buy now before record date and participate in the buyback…assuming the buy price at Rs.930…acceptance ratio at 50%…buying 100 shares at 930…accepting 50 shares at 1150…average price of remaining shares will be 710…hence if the stock re rate after buy back the overall profit will be affected…after buyback EPS will increase as the no. of outstanding shares is going to decrease… assuming all other factors same…that is sales, growth, profit etc…