As we all may aware that VRL logistic come with buyback plan max of 41 Cr INR.
Can somebody help me to understand VRL logistic buyback participation is worth at CMP(388)
Also if somebody explain the buyback acceptance ratio in case retain holding is of 10% of overall holding.
Thanks in advance!
I’m unsure if this answer is entirely correct, cause I’m doing some guess work too. Maybe someone can add/correct it if required:
VRL Buyback details:
Buyback type: Open market, through exchange
Max buyback price: 460/share
Max buyback amount: 41.4cr
Max no. of shares that will be bought back: 9 lacs = 1% of total equity shares of company
If the retail holding is 10% of overall holding, then acceptance ratio for retail is 10%.
Purpose of buyback: A move to reassure investors that even though the shares are trading at 390, the company is ready to pay upto 460/share. So even if there are no buyers in the market, the company is ready to buy it back.
Mode of buyback: VRL will place a buyback order through their broker, probably once a week in the normal market session between 9.15am and 3.30pm. All you have to do to participate in the buyback is sell your shares in the open market.
Track the buyback: Once the buyback window is announced, you should be able to track the daily buyback on on NSEIndia > Corporates > Announcements(Corporate information) > Corporate Information > Daily buy back(Equities).
In totality, this isn’t a buyback as such. It’s a move of reassurance. You make money only if the price of VRL goes up.