Buyback
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Buybacks are very interesting activities. It’s when a company decides to buy some of its listed shares back from stock market investors.
Often, buybacks can offer many short-term investment opportunities. This is because companies usually announce a buyback at a price higher than the existing market price. So, many short-term investors look to buy the shares of the company at the lower market price and submit them in the company’s buyback.
Here are the latest Buybacks:
- Company: Mphasis
- Buyback price: Rs 1,350
- Buyback amount: Rs 988 crore
- Our recommendation: Buy now, participate in buyback
- Record date: 25th October, 2018
- Company: TCS
- Buyback price: Rs 2,100
- Buyback amount: Rs 16,000 crore
- Our recommendation: Buy now, participate in buyback
- Record date: 25th October, 2018
Buyback performance update:
TCS Buyback
- Tata Consultancy Services (TCS) bought back 7,61,90,476 equity shares at a price of Rs 2100.
- The total amount utilized in the buyback was Rs 16,000 crore.
- As per SEBI norms, 15% of the buyback is to be reserved for small shareholders (shareholding less than Rs 2 lakhs). Out of 1,14,28,572 shares reserved, 40,16,984 shares were tendered. Thus, all small shareholders’ shares were accepted in the buyback.
Below is a brief calculation of returns for a small shareholder buying TCS after the buyback research report:
Kotak Securities (PCG Research) Report date 26th June, 2018 10-day average price after report (27/6/18 to 10/7/18) Rs 1,869.14 Buyback Price Rs 2,100.00 Pre Tax Return 12.4% Buyback Announced 15th June, 2018 Buyback Completed 28th September, 2018 Don’t have an account? Click here to open an account and start participate in a buyback
