TCS buyback anyone?

It’s Not like that…..Depends on acceptance ratio

dhinchakrohit wrote:

It’s Not like that…..Depends on acceptance ratio

Yes, ofcourse.

Historically their acceptance for retail has been 100%, I don’t think it would go below 40%. Plus the appreciation in share price closer to 4000 range will support overall ROI.

20% is max. 15% is likely.

SS3321 wrote:

Yes, ofcourse.

Historically their acceptance for retail has been 100%, I don’t think it would go below 40%. Plus the appreciation in share price closer to 4000 range will support overall ROI.

20% is max. 15% is likely.

How have you come to 15% return calculation bro? See below as per latest share price. 

What is buyback? I have few shares does it mean tye share price will go up to 4500?

FreakingAwesome wrote:

What is buyback? I have few shares does it mean tye share price will go up to 4500?

No it won’t go upto 4500. But if you hold tcs shares on 23 Feb (last date to buy 21 Feb) then you’ll be able to sell a portion of your shares (30%-70%) to the company at 4500

FreakingAwesome wrote:

What is buyback? I have few shares does it mean tye share price will go up to 4500?

It will most likely go above 4500. 

FreakingAwesome wrote:

What is buyback? I have few shares does it mean tye share price will go up to 4500?

The act of promoters of a company buying back shares from shareholders is known as buyback. 

It is not guaranteed. 🙂

jain01010199 wrote:

No it won’t go upto 4500. But if you hold tcs shares on 23 Feb (last date to buy 21 Feb) then you’ll be able to sell a portion of your shares (30%-70%) to the company at 4500

But I manage all shares on growww app.. Does it allow participating in buyback? 

jain01010199 wrote:

How have you come to 15% return calculation bro? See below as per latest share price. 

i didn’t do an actual calculation but it was more of an approximation.

In your assumption you have not taken into account the price appreciation close to 4000 which is probable (not certain but likely). Plus I purchased at 3730 per share on 14 Feb so I am further in-the-money.

Using these assumptions you will land up at about 15% ROI at 40% acceptance rate.

bikidas2060 wrote:

The act of promoters of a company buying back shares from shareholders is known as buyback. 

It is not guaranteed. 🙂

That’s very incorrect, it’s actually the company treasury which is purchasing the shares (and subsequently cancelling it)

Promoters are infact participating in this buyback i.e. tendering some of their shares for the buyback as well

bikidas2060 wrote:

It will most likely go above 4500. 

If it goes above 4500 why will people sell their shares to TCS and not continue holding?

SS3321 wrote:

i didn’t do an actual calculation but it was more of an approximation.

In your assumption you have not taken into account the price appreciation close to 4000 which is probable (not certain but likely). Plus I purchased at 3730 per share on 14 Feb so I am further in-the-money.

Using these assumptions you will land up at about 15% ROI at 40% acceptance rate.

After tendering buyback date the prices will normalise a bit downward bro.
The reason why TCS is not as volatile like the other IT stocks is because of this buyback. Once it’s over it will trade normaly. Currently share price majorly influenced by the buyback

Check with customer care of the broker. Most likely it should be allowed. 

SS3321 wrote:

That’s very incorrect, it’s actually the company treasury which is purchasing the shares (and subsequently cancelling it)

Promoters are infact participating in this buyback i.e. tendering some of their shares for the buyback as well

https://en.wikipedia.org/wiki/Share_repu...se

I messed it. 🙂

jain01010199 wrote:

If it goes above 4500 why will people sell their shares to TCS and not continue holding?

Psychology. That’s how it works. 

SS3321 wrote:

i didn’t do an actual calculation but it was more of an approximation.

In your assumption you have not taken into account the price appreciation close to 4000 which is probable (not certain but likely). Plus I purchased at 3730 per share on 14 Feb so I am further in-the-money.

Using these assumptions you will land up at about 15% ROI at 40% acceptance rate.

My friends have bought shares of TCS and they have availed margin against it. Some of them have bought TCS futures too. 🙂🙂🙂 People know how to utilize a chance.

bikidas2060 wrote:

My friends have bought shares of TCS and they have availed margin against it. Some of them have bought TCS futures too. 🙂🙂🙂 People know how to utilize a chance.

Brother, please inform your friends that they might not be able to tender their shares if they have availed margin against them (pledging shares). While trading in futures, will not affect their participation in the buyback I am certain that they will not be able to tender those shares through which they have availed margin from the broker. 
They still have time to unpledge those shares, please inform them immediately. 

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bikidas2060 wrote:

Psychology. That’s how it works. 

No the share price doesn’t work like that wrt buyback – it won’t go above the buyback price.

jain01010199 wrote:

Brother, please inform your friends that they might not be able to tender their shares if they have availed margin against them (pledging shares). While trading in futures, will not affect their participation in the buyback I am certain that they will not be able to tender those shares through which they have availed margin from the broker. 
They still have time to unpledge those shares, please inform them immediately. 

They are very old players. They know crooked methods. They know their brokers. They use local ones. Local ones are a bit generous in these things. They ll unpledge the shares in right time.  

 I had personally sold TCS 3980 CE. 🐒🐒🐒

jain01010199 wrote:

No the share price doesn’t work like that wrt buyback – it won’t go above the buyback price.

Wrong. There have been few instances where stocks have traded above buyback price towards the end of buyback programme. See Wipro’s 2020 buyback for instance.

While you are correct with the reasoning, but there is no theoretical cap on the share price.

Edit: Just checked it was a tender offer as well

jain01010199 wrote:

No the share price doesn’t work like that wrt buyback – it won’t go above the buyback price.

in case of TCS it usually go. Just check the history. Last time buyback was set at 3000. After buyback prices shot past 3000. 

jain01010199 wrote:

After tendering buyback date the prices will normalise a bit downward bro.
The reason why TCS is not as volatile like the other IT stocks is because of this buyback. Once it’s over it will trade normaly. Currently share price majorly influenced by the buyback

Which is why I am assuming 4000 per share price and not 4500. During previous few buybacks for TCS, acceptance rate was 100% for retail because the trading price reached the buyback price.