BSE Ltd. announced a Rs 374-crore share buyback. The company will be buying back 34.7 lakh equity shares.
The total number of shares that the company will buy back amounts to 2.56% of the total equity.
What Is The Offer Price?
The maximum price of the share buyback has been set as Rs 1,080 apiece.
Tender Offer Or Open Market?
The buyback will be done through the tender-offer route.
In tender offer buyback, the company announces a fixed price at which it will buyback shares from the existing shareholders. For example, Wipro's buyback was fixed at Rs 445 per share.
BSE's buyback price has now been revised at Rs 1,080 per share from Rs 816 earlier.
When Is The Buyback?
Timeline for the opening and closing of the share buyback is yet to be disclosed.
How Many Shares Tendered Will Get Repurchased?
The number of shares that the company will repurchase depends on the acceptance ratio.
According to Securities and Exchange Board of India rules, 15% of the total tender offer is reserved for the small shareholder category — an investor with an investment of not more than Rs 2 lakh in the company as of the record date. The small shareholder category holding stands at 59% or 5.96 crore shares.
So, 15% of the buyback offer of 34.7 lakh shares will be reserved for the company's small shareholders, which amount to 5.2 lakh shares. Hence, the acceptance ratio for the retail category will be 0.87%.
The acceptance ratio for the general category will be 7.21%.
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