BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
Welspun Enterprises Ltd. has come up with a buyback opportunity wherein buyback for 1.18 crore shares at a price of Rs 200 for an aggregate amount not exceeding 235 cruising the tender route. This represents 14.22% of the aggregate of the company's total paid-up share capital.
We recommend the below strategies for Welspun Enterprises' buyback:
Small shareholder (investment not more than two lacs): Reserved 15% of total tender offer-
- Scenario I - Minimum acceptance ratio is 13% when all participants tender 100% of their shares.
- Scenario II - Minimum acceptance ratio is 18% when 70% participation is assumed by small retail holders.
- We expect a Return of 2.3%-3.1% assuming the currenc market price is the price post buyback in this scenario in the next two-three months
General category (investment exceeding two lacs) -
- Scenario I - Minimum acceptance ratio is 17% when all participants tender 100% of their shares.
- Scenario II - Minimum acceptance ratio is 22% where participants unlikely to participate are eliminated from the total offer calculation.
- We expect a return of 3%-3.8% assuming the CMP is the price post buyback.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
