What happens to the non retail shareholders of Infosys (i.e. those holding shares worth more than 2 lac on record date of Nov 1)?
I am one such shareholder as I have steadily been accumulating shares with every price drop but I am still an individual and not a company / institution.
Will I be eligible for share buy back? If yes, what will be different for such shareholders as compared to retail shareholders?
Will the number of shares eligible for buyback be significantly less (% wise) as compared to retail shareholders?
That means you are a retail investor, not NON-retail investor/shareholder.
Retail investor
A retail investor is an individual investor possessing shares of a given security. Retail investors can be further divided into two categories of share ownership.
A Beneficial Shareholder is a retail investor who holds shares of their securities in the account of a bank or broker, also known as “in Street Name.” The broker is in possession of the securities on behalf of the underlying shareholder.
A Registered Shareholder is a retail investor who holds shares of their securities directly through the issuer or its transfer agent. Many registered shareholders have physical copies of their stock certificates.
But according to the reports / articles, its mentioned everywhere that only those folks who are having shares worth less than 2 Lac INR would be classified as retail shareholders and the 5% reserved amount out of 13k Cr is applicable to them.
My question is for people like me who have shares more than 2 Lac INR worth and are individual investors.
Someone told me that those retail investors who have more than 2 Lac INR shares fall under HNI bucket and rules are different - wanted to understand the same.
Sample example of an article which defines “retail investor” as per Infy / SEBI. Folks holding shares worth “up to Rs 2 Lakh on the record date”
Can someone please help me to answer the queries I have raised in my first post in this thread?
Will I be eligible for share buy back if I have more than 2 lakh worth of shares?
If yes, what will be different for such shareholders as compared to retail shareholders?
Will the number of shares eligible for buyback be significantly less (% wise) as compared to retail shareholders?
This is already there in the links shared in the thread shared earlier. You HAVE to take the extra little efforts to go through them.
The entitlement ratio can be calculated only on the basis of the share price on the record date and the total number of shares held by retail investors.
According to the company’s filings, 2.87 crore Infosys shares were with investors holding 200 shares or less as of March 31. If we assume a price of Rs 1,000 on the record date for Infosys, the value of the shares held by these investors will be Rs 2 lakh or less, qualifying them as retail investors.
Since Infosys will have to buy back Rs 1,950 crore worth of shares from retail investors, at the buyback price of Rs 1,150 apiece this works out to 1.69 crore shares. So, the ratio of the shares Infosys will buy back from retail investors to the total number of shares held by the category stands at 59 percent. And that’s the derived entitlement ratio.
Remember, that’s based on an assumption and the entitlement ratio changes with the share price and the total number of shares.
