you are right even though the acceptance ratio could be a bit higher
I participated in infosys buyback offer but didnt receive any email confirmation yet. any idea ?
Yes but not much above 10%, we would be lucky to get a 25% acceptance ratio.
Infosys buyback email is out?
thanks a lot sir for the heads up!
I just checked the shareholding pattern for last few quarters. In fy17 q4 and fy18 q1, sub 2 lakh shareholding was around 14.5 Cr. Whereas in fy18 q2 it has risen to 16.5 Cr. How can entitlement ratio fall so drastically for a change of mere 2 Cr shares? On what basis was 59% ratio calculated?
Link for shareholding pattern data:
The retail investor quota in a buyback is Rs. 2 lakhs in terms of market value but the number mentioned in the quarterly shareholding pattern is Rs. 2 lakhs in terms of share capital. Considering the face value of infosys is Rs. 5, this data in the quarterly shareholding pattern will include every shareholder who holds between 1 share and 40,000 shares. The 59% entitlement ratio has been calculated using the numbers from the Infosys annual report. The data regarding the number of shareholders holding less than 200 shares (and the total number of shares held by such shareholders) is only shared in the annual report.
It may take up to 3 months (or even more) from the record date for the buyback to get completed. It’s been 2 months since the record date for Wipro’s buyback. We’ve still NOT got the tender forms for Wipro. I sent a mail to Wipro and they told me that they are still waiting for relevant approvals from SEBI. Only after all approvals are obtained, will the shareholders receive the tender forms.
Why these buybacks are so complicated.
It implies there are 913477 (9.13 lakh) shareholders in Infosys who hold between 1 and 40,000 shares. The total number of shares collectively held by shareholders in this category is 16,51,77,824 (16.51 crores).
Yes, I’m sure
I think your interpretation is incorrect. It is not 1 to 40000 shares but shares whose value is less than 2 lakhs. There are 9.13 lakhs such shareholder (retail category).
What is the approx date user get tender from from RTA for buyback of Infosys share
That figure does not indicate market value less than 2 lakhs. It indicates share capital less than 2 lakhs. Share capital is also known as par value or face value. The face value of Infosys is Rs. 5 per share. When you divide 2 lakhs by Rs.5, you get 40,000 shares.
bloomberg quint buyback guide calculated it as 59% based on retail shares under 2 lakh from march31 2017 results which was 2.87 crores…i checked sept 30 quarterly results and it showed 16 crore…do the math…i am not sure if it is calculated on the basis of facevalue as someone said
what will be the entitlement ratio according to you…earlier cases of hcl and tcs showed less than what was initially expected…but the acceptance ratio was higher than predicted
The entitlement ratio is very difficult to predict. The number quoted in broker/investment bank reports. which is 59%, was calculated based on the data available as on March 31st 2017. Over the past 8 months, this could have changed significantly. Unlike previous buybacks, the Infosys buyback received large scale coverage, so much so that many brokerage firms sent their clients a special note recommending purchasing Infosys purely as a buyback play.
One thing is for sure; the more time Infosys takes to send out the tender forms, the higher will the acceptance ratio be. If it takes a long time like the Wipro buyback, a large number of retail investors would lose patience, sell the stock and deploy their funds elsewhere, thereby increasing the acceptance ratio for the rest.