Elegant Marbles & Grani Industries Limited Buyback 2023
Elegant is India’s number-one brand for luxury stone with more than 35 years of experience & a rich history which backs up its reputation. it has spread over 35000 square feet in Mumbai’s largest marble stockyard located in the center of what has now become the famous marble market of India. Elegant brings international brands such as Versace Ceramics and Glass2 large format glass surface to India. As India’s Premier exporter and manufacturer of Italian Marble company has a demonstrated expertise in selecting and supplying high quality materials.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jan 05 2024 |
| Buyback Opening Date: | Jan 11 2024 |
| Buyback Closing Date: | Jan 17 2024 |
| Buyback Offer Amount: | ₹ 26.83 Cr |
| Date of Board Meeting approving the proposal: | Nov 11 2023 |
| Date of Public Announcement: | Nov 11 2023 |
| Buyback Offer Size: | 19.04% |
| Buyback Number of Shares: | 6,97,000 |
| Price Type: | Tender Offer |
| FV: | 10 |
| Buyback Price: | ₹ 385 Per Equity Share |
Details of Buyback:
The proposal to buyback not exceeding 6,97,000 (Six Lakh Ninety-Seven Thousand Only) equity shares of the Company (representing 19.04% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 385/- (Indian Rupees Three Hundred and Eighty-Five only) per equity share payable in cash for an aggregate consideration not exceeding 26,83,45,000 (Indian Rupees Twenty-Six Crores Eighty-Three Lakh and Forty-Five Thousand only)
Salient financial parameters:
| Particulars (In Cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 19.66 | 10.28 | 9.26 | 27.82 | 35.65 |
| Expenses + | 18.53 | 11.58 | 12.6 | 26.33 | 31.67 |
| Operating Profit | 1.13 | -1.3 | -3.34 | 1.49 | 3.98 |
| OPM % | 5.75% | -12.65% | -36.07% | 5.36% | 11.16% |
| Other Income + | 3.05 | 2.93 | 2.69 | 1.84 | 0.54 |
| Interest | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0.28 | 0.13 | 0.13 | 0.2 | 0.3 |
| Profit before tax | 3.9 | 1.5 | -0.78 | 3.13 | 4.22 |
| Tax % | 16.15% | 1.33% | 0.00% | 14.06% | 27.96% |
| Net Profit + | 3.27 | 1.47 | -0.79 | 2.69 | 3.04 |
| EPS in Rs | 8.93 | 4.02 | -2.16 | 7.35 | 8.31 |
| Dividend Payout % | 0.00% | 0.00% | 0.00% | 37.42% | 39.73% |
How to Participate in buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Elegant Marbles & Grani Industries Limited Buyback 2023 in Demat or physical form as on the record date [05/01/2024].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [11/01/2024] by selling your shares through your broker on NSE or BSE.
3. Then on [24/01/2024], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.
Profit from the buyback on the bases of acceptance Ratio:
Buy 519 Shares at CPM of Rs. 324 (2,00,000/385)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 168156 | 168156 | 168156 | 168156 |
| No. of Shares Buyback | 171 | 259 | 389 | 519 |
| Buyback Profit | 10,431 | 15,799 | 23,729 | 31,659 |
| Profit% | 6.20% | 9.40% | 14.11% | 18.83% |
178 Comments
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Sold all the remaining holdings today.
Just for information, some bulk deal happened today for 15,000 shares which broke the lower circuit. I sold all the holding because today I got the first chance to sell the unaccepted shares (as per my buyback trading rules)
I sold all the remaining stocks today. It’s a good learning experience. The stock is going to have a small rise early next week. The reason why I sold it today is due to high volatility and unsure about when buyer would place a bulk order.
Mr.Rohit, Did your comment pass through (the BSE link)? If not can you tell me under which option can i find about the number of shares tendered?
Yes, its get approved. You can find it my previous comments
Has anyone been able to sell any shares at the LC in the last few days ? My expectation is that almost all of those sales would have been made by market makers/ exchange members with their own hardware connection since they would be able to get ahead in the queue. Among brokers, i would expect ICICIDirect and other full service brokers to be faster than discount brokers like Zerodha.
Yes, I just did.
I meant before today. Were you able to sell any shares on days that the stock traded only at the LC price for that day ?
No. I sold all the shares in a single order as mentioned on Feb 2.
As I had thought, the acceptance ratio in the general category ended up being much higher than in the small shareholders category.
What was the acceptance ratio for general category?
I feel the volume and price during the regular days before buyback decision was very low. Price might get even lower than our expectations.
Has anyone found any other news or insights about how this could go?
Mr.Rohit and other experts do you guys think a rally could happen anytime soon after someone chips in to buy high volumes?
The % response was 313.38% for small shareholders and 135.91% for general category.
The stock seems to have gone back to its normal trading volume. The period during the buyback seems to have been an exception.
Right now, many of those who bought for the buyback are still stuck . As long as they keep trying to sell and no one steps in to buy , the stock might keep hitting LC.
Anyone considering buying high volume would be wary that they might not get an opportunity to sell for many months/years, given the low liquidity. I have no idea at what price someone will think it is cheap enough to buy large amounts to compensate for the risk of being stuck with it for a long time.
The only positive news which I can think of is exceptional result which may increase marked demand. I have not reviewed the financials of the company. Will review it as we all are stuck.
Hey experts, Do you guys plan to hold onto this stock for longterm? I still feel it’s over priced even after huge sell out.
This is a classic case of distribution. Shares of this company were trading around R140 few months back and around Rs 180 few weeks back. Why would anyone want to buy shares of this company at Rs 300?
I expect this to go below 250 soon unless some operators become active in this counter like in Sinclair hotel.
Until the LC opens, people don’t really have any choice but to hold. For these low market cap, low liquidity stocks , especially those that have been managed by promoter families for a long time, understanding of technical factors like what operators may get involved is more useful than fundamental value analysis, in my opinion. They can stay very rich or very cheap for an extended period of time. They can also have several consecutive days of UC/LC. Right now, it would appear there are more people who want to sell and no one is necessarily in any hurry to buy. Unless one is an insider, it is very difficult to predict short-term price action. If SSK wants to buy the shares they sold back, for example, the stock may stabilize or even change direction, but it is very difficult for someone who is not privy to that information to say if or when that will happen.
This stock may be settled near S1 225
S2 175 S3 160
And consolidate for long time between 170 to 190
Lession from this buyback to all investor
1. Dont be greedy, play wisely.
2. Dont invest in peeny stock where you cant move out.
3. Participate only Good company’s buyback where you can earn money.
Now days many investor is participating in buybacks so return from buyback is very less or in some case it may become in loss. so invest only good company and bigger size buyback.
How you will evaluate that company is good for buyback ?
Your all points are just updesh …nothing else.
In current open buyback … Which ones are best ? Why don’t you provide your analysis ?
Is Elegant Marble a Penny Stock ?
Typical features of so called Penny stocks:
(1) Trading well below face value
(2) most of the times very low volume & sudden spurt in volume for few days or months, when operator active
(3) Most of the time company is only on paper & showing least possible profit, NO DIVIDENDS or any other type of reward to share holders in form of buy back
(4) Right or preferential issues common (pulling money from investors to their own account)
(5) Less liquidity (Wide difference in buy and sell spread)
(6) Low Market Capitalisation
(7) Hardly any Reserve
Elegant Marble is profit making , dividend paying , Market cap more than 100 crores, Reserves more than 100 crores, 40% of earning paid to share holders by way of dividend , successful buy backs in past etc
Latest buy back of 18% equity (one of the largest in % terms in recent past)
Only Negative Point
Low liquidity : Only 11% shares with public. Remaining with Promoters, HNIs & corporates (Long Term Investors)
I personally feel that irrespective of whatever loss happened in recent buy back, Elegant Marble should not be categorised in to ‘Penny’ stock.
Zerodha had categorised it as a penny stock and showed that warning if one tried to place a buy order. I think it was for good reasons :
1) For most of the prior year, market cap had been well under 100 crore
2) Liquidity is usually extremely low. I believe that excluding yesterday, the average daily volume for the prior week had been less than 1000 shares.
Because there is a significant risk to uninformed investors in getting stuck in a share like this, I believe Zerodha had correctly categorised it as a penny stock.
Like others, I also appreciate Rohit Ji’s analysis and comments and learned a lot from them, even though in this case the assumptions I thought were more likely to happen were different from him. No one is getting any personal benefit from posting here and profits as well as losses are the personal responsibility of those investing. One should be respectful of the views of others even if one disagrees with them. When I see disrespectful commente or attacks being made on others , it just convinces me not to post here in the future.
Actual AR Elegant Marble Jan 2024 Buy Back:
(1)AR for Routine Investors = Actual ER = 24.36 %
(2) AR for BBA (Buy Back Arbitragers) = Actual ER + AR for EST (Extra Shares Tendered)
AR for EST works out to be 12 / 140 = 8.57%
Hence Actual AR for BBA = 24.36 (ER) + 8.57 (AR for EST) = 32.93 % = 33 % (round figure)
(3) Selling by HNI before record date spoiled party of many of BBA.
I am retail investor – AR – 29 %
@VSK
Let us know
(1) Did u sell or purchase any shares after record date ?
(2) How many shares were entiltled & how many shares were tendered extra & finally how many shares were accepted ?
Final AR should come out to be 33% for all BBA
Ji, you are right. Mine is also 33%. on Record date i was holding 250 shares. and then sold some. I tendered 215 shares and 73 accepted.
Actually, it was retail investors buying blindly in the hope of high AR that spoiled the party. With the block sales, at least some of them managed to buy at lower prices. The block seller was sitting on good profits and knew it was the perfect time for him to take profits as lots of retail investors were trying to buy in the hope that most of their shares would be accepted.
SSK Scripts Private Limited sold around 1,60,000 before the buyback record date and I assume most of them will be bought by small shareholders for the buyback purpose. If this was not the case, we would have decent AR or a high buyback price as the CMP was around Rs 350 before the bulk deal happened.
Apologies if someone gets stuck in this trade due to my comments.
@ ROHIT
No need to tender apology in our forum.
Your analysis & probable profit was damn accurate but HNI selling increased no of small share holders from around 1200 to 3700 (3 fold rise) & we all had discussed about decreased AR before record date itself.
I was lucky to sell shares worth 3 & half small shareholder lots at difference of Rs 17 per shares before record date.
72 shares Accepted. 50 shares out of 250 sold during buy back at 330. Now 172 shares remaining.
Let’s see how much profit gets eroded with this small qty shares.
We should always expect the unexpected when dealing with penny stocks because of the immense possibility for manipulation.
Thanks for your message Gopi but I do not term it as manipulation. Manipulation is something different and the exit taken by SSK is completely genuine.
Mr.Rohit, It’s a learning experience. We had seen a lot of unknowns regarding this buyback throughout the phase. I still couldn’t understand how the issue size (19.04%) was allotted.
Your insight and other experts insights have helped a lot of people in this forum. Apology, it’s not necessary.
The bottomline is everyone should be careful with going with a penny stock from now on. We should consider of possibilities of unknown and chances of manipulation.
Thanks all for your comments and support. The only mistake I made was to have hope at the end of the last day for the buyback price increase. I had a very decent profit on the day of the record date but got stuck due to this hope. As mentioned in my previous comments, I already sold more than 50% of my total holdings before the record date and booked a decent profit.
As per my buyback trading rule, I moved out from the stock on the same day or the next day which I am not sure is possible in this stock due to a lower circuit but I will move out once I see any buyer at any price.
Any information about acceptance ratio?
15 out of 50 accepted
how did you get to know?
Is this correct ? I thought it could go under 40%, but I didn’t think it would go as low as 30%.
Last day for tendering today. I think my unscientific guess that AR for small holders might be lower than 40% could still hold and there is a possibility that AR for general shareholders could be higher. Let us see. We will find out in a few days.
Total tender shares are 163% at the close. Also, 67% of the shareholders tendered their shares.
Small shareholders tendered details please?
That data is not available publicly yet. Before the tendering data came out, I thought there was a reasonable probability of retail AR being less than 40%. After looking at the data, I still think there is a reasonable probability , but the most likely outcome is somewhere between 40%-50% . This is based on several assumptions, any of which could turn out to be wrong.
Mr.Rohit What’s your opinion with these data?
Also is the comment still pending? If so can you tell me under which section are you getting these data from bse?
I am a new investor and having shares of Elegant. Please advise how to apply for Buyback.
It is very simple, online submission of tender. Contact your broker and submit accordingly, tomorrow is last day for submission, wish you all the best
Thank you so much for your timely help.
On another note : which is the best website to discuss the buybacks.
This is the best website for Buybacks Vivekji. 🙂
But here we can not tag people. App is not there. Many basic functionality of discussion is not there.
Do we have some telegram channel?
ACTUAL ER: 24.36
Total 3752 small share holders.
There were around 1500 small share holders at the time of announcement
Retail Portion Massively increased to 11.73 % from 8% before record date because of distribution sale by SSI
How much AR can be expected?
I will wait till the 15th evening and then decide whether to tender or not. As it depends on the CMP as well as total number of shares tendered by the shareholder.
The share price increased substantially due to announcement of buyback. I would agree with Mr.Rohit, I will wait until for couple of days and pay close attention to the number of shares tendered.
The shareholding pattern did have slight shift in retail shareholders, it was clearly seen in the trading volume distribution. The unknowns are starting to rise up especially if promoter’s are going to participate in it, will play it’s part.
Mr.Rohit, Do you think buyback size will play any part in better acceptance ratio especially for retail shareholders?
Many brokers like Zerodha don’t tender shares until the last day even if the shareholders put in their orders earlier, and shareholders have the option to cancel their orders until the last day. I don’t think accurate tendering data will be available till after the buyback closes. Let us see what happens.
What’s the ER for General category?
Mr.Rohit and Mr.Gopi Do you think buyback size will play any part in better acceptance ratio especially for retail shareholders?
ER for general category is 18.34%. This is one of the rare cases where there is a possibility ( though it is unlikely in my opinion) where the AR for general category would potentially be higher than the AR for retail category.
My bad I forget to mention another key factor is the share price. As the share price is floating well above its actual value. I would wait to see the share price on Monday and make a decision.
1. Please share your decision as 15 is over now.
2.
I am a new investor and having shares of Elegant. Please advise how to apply for Buyback.
If you had shares on record date then you would have received an email intimation. You can contact your broker and they will guide you since you’re new to investing. You still have two days to apply for buyback.
The total tendered at the end of the 15th Jan stood at 130% and the total number of orders is 1255. As per the Offer letter, the total number of shareholders is 3,832 so right now approximately 32% of the shareholders have made the tender.
After considering the current price and tendered details, I think it is better to tender shares. Will place the order today around 3 pm as I do not want to take risk by applying on the last date. Will post an update once I tendered the shares.
Mr.Rohit, Could you source the website?
After the upward price shift, I tendered it yesterday. It looks good like a buyback scenario for retail shareholders. Let’s see the numbers after 17th.
Just tendered my shares.
Link as requested – https://www.bseindia.com/markets/publicIssues/ACQDisp.aspx?id=526705&type=OTB&idtype=1&status=L&IPONo=6397&startdt=11/01/2024
Just tendered my shares. Previous comment is in moderation.
The total tendered at the end of the 15th Jan stood at 130% and the total number of orders is 1255. As per the Offer letter, the total number of shareholders is 3,832 so right now approximately 32% of the shareholders have made the tender.
Mr.Rohit, How did arrive to this statement?
I feel we can get an idea about the ideal numbers after 17th. I’m still puzzled about how did you arrive to this numbers?
Thanks !!
I tentered the share today in Zerodha.
Good luck with the buyback!
The total tendered at the end of the 16th Jan stood at 148%
Mr.Rohit! How did you get this number?
You can get this data from the BSE website. I have shared the link in one of my previous comment but it is pending for approval.
There are too many unknowns, but if the stock price doesn’t go up too much from these levels, I would guess AR would not be substantially higher than ER, maybe 40% at best, but it is a penny stock and anything is possible
Buyback Open date:- 11th Jan 24
Buyback Close Date:- 1th Jan 24
ER:- 24.36%
*Buyback Close Date:- 17th Jan 24
As expected, not much difference in ER between General and Retail categories.
Still upcoming dates are not published for Buyback offer and tendering and closing. Any idea by when dates will be published ?
Sold 50% of my holdings and book profit. Still have some hope for price increase.
Excellent. Keep going 💪. Still have to learn a lot from you Rohit Ji. Kindly be available with your priceless knowledge and communications.
Yes, I will try to remain available as much as possible. Missing Sumit Ji and Siva Ji in the forum.
Good work Mr.Rohit. Your work is helping a lot of people.
Thanks. I believe in spreading knowledge.
So if I want to buyback, do I just need to sell?
Should we sell or not?
Looks like Big Investor (most probably, Operator, who accumulated shares from July 2023) is on sale mode in last 2 or 3 days.
@ROHIT / GOPI / Other senior members,
What’s ur opinion?
Should one enter fresh below 340 to get buy back advantage or will be very difficult to get exit in left over shares post buy back ?
Potential upside and risks have been discussed quite comprehensively in the preceding comments. Ultimately it comes down to your risk appetite. How high the AR will be and who would want to buy the unaccepted shares and that price are the key questions and only you can decide whether the potential profits justify the risks.
I bought another 150 @ Rs 331 for buyback. I hope the AR will be very good. Also, I do not think this is any operator play as the trade volume is on the lower side. I think people quit because they think the buyback price is not good in regards to the CMP and booking profit and do not want to take the risk of leftover shares. I am still positive that the buyback result in a positive outcome. Will buy another 200-300 shares if it goes around 320-325.
Sold all the additional shares to qualify for the small shareholders on a nominal profit.
Can i sell it tomorrow to qualify for small shareholders? How much are you holding onto?
Can anyone tell me whether I could sell extra stocks today to come under retail shareholders or it too late for it?
Sorry for not replying. Yes, you can sell it today to qualify for small shareholders.
Thanks a lot Mr.Rohit. Can I make a decision according to the price during closing time. I’ve 550 shares right now. How many stocks are you currently holding onto as of now?
What should be idealistic number of stocks to be retail shareholder?
I have around 818 shares in 2 Demat accounts and sitting at a profit of Rs 13,000 approx. I hope to book the profit at the day’s end and not participate in the buyback if the board keeps Rs 385 as buyback price.
Rohit Ji, how much value of shares I shud have to qualify for small Shareholder ? Currently I hold 90K Rupees. Shares.
For qualifying as a small shareholder, the total market value of the holding should be less than Rs 2,00,000 as on record date i.e. 05 Jan 24.
Thank you so much. You are one of the best person here !!
Thanks. I think a lot of people want to learn how buyback works so I am planning for a new blog that will have all the details so any person can learn how buyback works along with the details for all the open buybacks as well as my workings so others can save time. I like investorzone but it does not have a lot of basic functionality that is required by the users. I hope it will take me 2-3 months to set up all the things as I am already engaged in various other businesses.
Props to you Mr.Rohit. Well appreciated. Belated wishes! Happy New Year to Mr.Rohit and everyone here and have a great year guys!
Are you going to sell the stocks tomorrow? Does the stocks has to be in our account on record date?. The closing price of stock on ex-dividend date or record date, what will be considered?
Mr.Rohit, Can you give me your reason why you’re participating in this buyback?
I already sold half of my holding today and booked a profit of 6%. Yes, stock has to be in your account to claim the buyback on the record date. The closing price on the record date will be considered i.e. 05 Jan 2024 for counting small shareholders.
As mentioned, I sold half of my holdings to book a profit of 6%. As of now, we have a buyback premium of only 8% and I do not hope we are going to have 75% AR so I think it is better to book 6% profit.
However, I left shares only in my account to get the benefit of tax-free income on buyback.
I kept 50% holding as I had a little hope that the board would increase the buyback price.
Wise choice. What do you think about the acceptance ratio of this buyback? Does buyback size play a part in high acceptance ratio?
Will there be a big movement of stocks on record date, it could be buying or selling in high volume? Do you think the price of the stock would cross 370 or more tomorrow?
How do you think the board would increase the buyback price?
So just sell and I will get buyback price?
Rohit Ji, how much value of shares I shud have to qualify for small Shareholder ? Currently I hold 90K Rupees Shares.
Good calculated risk and same is rewarded
It’s the first time I have touched a penny stock. It no doubt started exhibiting the true nature and peculiar characteristics. I saw it jumping up and down so quickly and fast providing lot of excitement and anxiety. I ended up buying about 800 between 341 and 330/. 19 percent and if retail investors are so few as stated earlier by Rohit ji, it should be 100 percent AR for retail category. Then no problem. Left over shares as you rightly guessed may be a problem. For the time being, let us enjoy the thrill and hope for the best.
Assuming retail shareholding stays under 15%, the total number of shares reserved for retail investors would be around 1 lakh. Do you think the total number of shares tendered by retail investors will be only 1 lakh ?
(1)Average Volume last 1 month: below 10k
(2)Average Volume last 6 months: below 4k
(3)Volume in last 2 days : more than 40k
Means volume has been multi fold in last 2 days and someone is selling shares in tranche of around 5000 shares with market price Order, 4 to 5 times in a day since 2 days & every time price falls to around lower circuit.
@ ROHIT,
I feel that Retail clients unhappy with Buy back Arbitrage Equation won’t sell shares like this in a hurry and it is highly unlikely that all unhappy small investors sell at the same time, making one sell order to the tune of around 5000 shares each time.
As ER for HNI would be around 20% Only, I feel that most probably, HNI investor (or operator) is selling shares, knowing that there is sufficient demand for shares before record date, which will not be there post-record date.
@TRINITY
I have had read all past comments few days back and scenario, which you had mentioned about HNI selling shares so that Small Shareholders might not get benefit of 15% reservation, might be unfolding
This possibility might unfold because of such type of distribution, not because of any scam or trap (Only small probability).
With all risks associated with this penny stock, I invested more TODAY at an average price of around 336 in addition to what I originally intended to invest.
I may buy extra, if it falls tomorrow.
Reason: ER and AR for BBA (buy back arbitragers like us) will be very high to offset any potential loss arising out of unaccepted shares.
@Aankit when I used the term “trap” I didnt mean a scam but a situation in which investors would find themselve stuck with unaccepted shares because demand would disappear after the buyback and the stock might trade at LC for many consecutive days.
How high do you expect the AR for retail segment to be and how much do you think the stock might fall after buyback before you can exit the unaccepted shares ?
Excellent comment 👌. Please keep it up, Ankit ji. As I had stated many times earlier, I have no idea about penny stocks. Since a righteous, knowledgeable and reliable person like Rohit ji is so positive, I have decided to participate. Let us swim or sink together. Good luck to all.
Hello Ankit,
Thanks for sharing your views. After your message, I analyzed the share again and found out about the 2 bulk deals on 26 Dec 2023 and 27 Dec 2023 in which 91369 shares were offloaded by SSK Scripts Private Limited. As per the latest shareholding pattern, the total holding at the end of Sep 23 for SSK is 1,63,319. So SSK is left with another 71,950 shares so we may see another couple of days when the share remains range-bound or negative. So, if you remove this bulk trade deal then the total share trade in the last 2 days is 15948 which is in the normal range. As per the details available for the bulk deal, SSK Scripts bought shares in 2021 and 2014 (and even before that ) for Rs 73 and Rs 40 respectively so they are making a very decent gain.
So, I suggest do not add any more shares as of now and wait for a couple of more days to find out whether SSK will keep on offloading the remaining shares.
I will add more shares for buyback only when SSK sells another 40,000 to 60,000 shares to make sure that shares will not fall further.
Very sensible. No change in the pattern. Moving swiftly between 339.9 and 330.
@ TRINITY, ROHIT & GOPI,
Thnaks for valuable inputs & appreciation.
I also pumped extra fund, just because of no other opportunity and Rohit ji sounded positive from Day 1.
My presumption to participate in this buy back were:
Entry price: below Rs 340
EER: 39.23
Conservative AR: 60
Left over shares to be sold : any price above Rs 300
Least possible Profit with above criteria: Rs 5720 against investment of Rs 1,75 lacs
Below Rs 300, no support is seen & stuck up with script for next 3 or 4 years.
But now, as Rohit ji mentioned, SSK (single HNI) Sale of 91k shares in last 2 days, might have created more than 200 small category share holders competing with us & this might not be the end of selling by SSK.
So now EER & AR calculation will be changed for small shareholders.
Note: This is my third attempt in buy back, first being TCS & second being SIS.
As the Nos of newly small shareholders increases, surely this will impact the AR.
I think the price movement on coming days (before ex date) will be very volatile.
After bb price may be in range of 225-275
After considering the comments of all the friends, particularly of a major share holder selling in tranches I sold all my holdings first thing in the morning at a small gain. I may buy again next week if normal behavior is seen in this stock. Good luck.
60K volume today so I think SSK is still selling. Will confirm once the bulk deal details get updated on the BSE website.
SSK sold 61464 today as per the bulk deal details. So they are left with 10,486 shares as of now and we may start seeing some upward movements from tomorrow.
I could purchase few shares @ 330.10 today.
Other order @ 325.10 got cancelled.
Bought another 500 shares @ 343 for the purpose of trading.
AR – 29 %
The selling by the big holders was not felt today. Wether it is a relief or a loss, only time will tell. Whether he will reappear again is also not known. I ,appreciate Rohit ji’s excellent research work in this matter.
As mentioned previously that seller is left with 10,000 shares only so I bought it today to sell it before the buyback.
It’s very rare to look into penny stocks declaring buyback. Mr.Rohit and Mr.Gopi the buyback size seems decent. Do you have any information whether company is going to participate in it? What do you think about the buyback in general?
Mr.Rohit How do you collect information about SSK selling. I’m starting to learn. Can you share the reference (website) of where collect these details?
Record date of Elegant Marble Buy back is 5th Jan 2024, Friday
I am not planning to book profit in the share right now as I think there is a decent chance of increasing the price of the buyback by the Buyback committee as the CMP is not too far from the share buyback price. A little bit risky but I think I can take this risk.
Also, the post-ballat result will be declared today or tomorrow.
Since you have such strong faith in this penny stock and there is no other buyback in the near term I have decided to go with you and participate in this buyback, Rohit ji. After all 19 percent is something you don’t see very often.
Thanks for your reply. Hoping for a decent positive outcome.
It’s very rare to look into penny stocks declaring buyback. Mr.Rohit and Mr.Gopi the buyback size seems decent. Do you have any information whether company is going to participate in it? What do you think about the buyback in general?
Mr.Rohit How do you collect information about SSK selling. I’m starting to learn. Can you share the reference (website) of where collect these details?
Did you mean BOD?
The details of the bulk deal are available on the BSE website. Do a search for the Elegant on the BSE website. Let me know if you are unable to find it.
Thanks for the response Mr.Rohit. I did find it. What do you think of this particular buyback? Is buyback size will be key factor for retail shareholders? I’m bought 500 @ 340. It’s toss up for me to sell the stocks not opting for buyback or participate in the buyback. I will take a call depending on the price on day before record date.
Also to participate in the buyback the stock has to be in my account on 5th January or by 4th January? When can I sell it and participate in the case of buyback participation.
Any expected Record Date 🙁
When 19.04% is issue size then buyback for the small shareholders will be very attractive
will one share strategy work here??
Yes but you may get 10 rs or may loose 10 rs per demat depends on brokerage and other services charges.
Is it lucrative?
As per me no .
So please don’t waste your energy and time for one share method in this buyback
Expected record date kab hai.
Acception ratio kya ho sakti hai.
🏃♀️ away please
EER showing 39% in one reputed portal .I have doubt .Will anybody confirm ?it may be typomistake
What is EER ? Which portal are you looking at ?
Expected entitlement ratio
Ipo cetral app
Is Elegant Marble a Penny Stock ?
Typical features of so called Penny stocks:
(1) Trading well below face value
(2) most of the times very low volume & sudden spurt in volume for few days or months, when operator active
(3) Most of the time company is only on paper & showing least possible profit, NO DIVIDENDS or any other type of reward to share holders in form of buy back
(4) Right or preferential issues common (pulling money from investors to their own account)
(5) Less liquidity (Wide difference in buy and sell spread)
(6) Low Market Capitalisation
(7) Hardly any Reserve
Elegant Marble is profit making , dividend paying , Market cap more than 100 crores, Reserves more than 100 crores, 40% of earning paid to share holders by way of dividend , successful buy backs in past etc
Only Negative Point
Low liquidity : Only 11% shares with public. Remaining with Promoters, HNIs & corporates (Long Term Investors)
I personally feel that irrespective of whatever loss happened in recent buy back, Elegant Marble should not be categorised in to ‘Penny’ stock.
Friends, I am participating in TCS. Can you please suggest any other buyback that I can participate based on the current price and Acceptance Ratio.
Somany ceramics looks good to me.
Thank you Gopi.
Not participating.
Any specific reason?
Poor Quarterly results coupled with low margin, Rohit Ji. Somany has had a better result and a higher margin although size is not much.
If your query is about this one, it is due to my strong resolve to keep away from Penny stocks no matter what I possibly might have gained.
ROHIT AGARWAL , Sir your analysis is quite impressive, I’m new to stock market ,I’m seen ur comments on buyback that u just buy share for buyback and sell regardless of profit or loss , do u use option to hedge stocks or how does it really work to get out in profit .
Hope to listen from u as soon as possible 🙏
TO,
ROHIT AGARWAL
Sir your analysis is quite impressive, I’m new to stock market ,I’m seen ur comments on buyback that u just buy share for buyback and sell regardless of profit or loss , do u use option to hedge stocks or how does it really work to get out in profit .
Hope to listen from u as soon as possible 🙏
This could potentially be a trap, depending on how many retail buyback traders get involved. The total number of shares is around 35 lakhs. 15% of that is 5.25 lakhs. The condition for ER to be the same for retail and HNI is that retail investors should hold less than 15% of the total shares. So, if retail holds more than 5.25 lakh shares, ER for both retail and HNI will be 19.04%. Assuming the average retail account buys about 500 shares for the buyback play, then it requires only 1000 accounts ( some people may apply through multiple friends/family accounts) to apply in order for retail ER to become the same as HNI ER (19.04%). And if these accounts are buying for the buyback, AR will be close to ER. Hence, buyback profit could be as low as 17% * 19.04% or less than 3.5% . Potential lose from non-tendered shares could be much higher.
Please let me know what you think.
Correction: * The condition for ER to be the same for retail and HNI is that retail investors should hold MORE than 15% of the total shares.
Can you please explain what you meant by HNI and the criteria to which you are referring? As per my knowledge and experience, the reserve portion of the Small shareholder is 15% of the buyback shares or actual shares held by the small shareholders on the record date whichever is less, and small shareholder meant the shareholders who are holding shares of less than Rs 2,00,000 as on record date at the closing market price (not on the basis of the face value of the share).
By HNI, I mean those holding more shares worth more than INR 2 lakh on the record date. I am referring to the same criteria you are. The only reason that ER is usually higher for small shareholders compared to non-small shareholders is that at least 15% shares are reserved for them and their cumulative shareholding is usually smaller than 15%. If, as an example, small shareholders held 90% of total shares, then, 90% of the shares of the shares would be reserved for them and 10% for other shareholders who together hold 10%. Thus, the relative advantage in ER that small shareholders enjoy over non-small shareholders due to the minimum 15% reservation criteria would be irrelevant in this case . So, both would have the same ER, which would be equal to the percentage of shares being bought back.
Please let me know if that makes sense.
“As per my knowledge and experience, the reserve portion of the Small shareholder is 15% of the buyback shares or actual shares held by the small shareholders on the record date whichever is less,” I think you mean whichever is MORE, otherwise it would be unfair to small shareholders and their ER would always be equal to or less than( when small shareholders hold more than 15% of shares) ER of big shareholders
Thanks for correcting me. I always think it was the number of shares which is held by the small shareholder but it is not shares, it is entitlement.
Just for explaining other members of the forum (as I am also confused after reading your message)
As per the SEBI Buyback Rules – Provided that fifteen per cent of the number of securities which the company proposes to buy-back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small shareholders.
Let’s assume 2 scenario in which small shareholders are more than 15% of the total share holders and second when they are less than 15% of total shareholders
Scenario – 1
Total shares – 100
Small shareholders – 20
Share buyback – 19 (rounded off for easy calculation)
Reserved shares will be
1. 19 (shares to be bought back) *15% = 2.4 shares
2. Actual entitlement for buyback for small shareholder = 20 (small shareholders)/100 (total shares) * 19 (shares bought back) = 3.8 shares
So, it will be 3.8 in this case.
ER of small shareholders – 19%
ER of other category – 19%
(Assuming all the shareholders will tender all the shares)
Scenario – 2
Total shares – 100
Small shareholders – 5
Share buyback – 19 (rounded off for easy calculation)
Reserved shares will be
1. 19 (shares to be bought back) *15% = 2.4 shares
2. Actual entitlement = 5 (small shareholders)/100 (total shares) * 19 (shares bought back) = 0.95 shares
So, it will be 2.4 in this case
ER of reserver category – 48%
ER of other category – 17.47%
(Assuming all the shareholders will tender all the shares)
Rohit ji can u pls elaborate how in first case er for small shareholders come out to be 19% when actual entitlement was 3.8 shares
In second scenario how it came out to be 48% where actual entitlement was 2.4 shares
Ok I got it anyways thanks for elaborating so fantastically
Rohit Ji, you have made confusion most confounding.☺️😀
I must be in deep sleep when doing this calculation. Correcting it now: –
As per the SEBI Buyback Rules – Provided that fifteen percent of the number of securities which the company proposes to buy-back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small shareholders.
Let’s assume 2 scenarios in which small shareholders are more than 15% of the total share holders and second when they are less than 15% of total shareholders
Scenario – 1
Total shares – 100
Small shareholders – 20
Share buyback – 20
Reserved shares will be
20 (shares to be bought back) *15% = 3 shares
Actual entitlement for buyback for small shareholder = 20 (small shareholders)/100 (total shares) * 20 (shares bought back) = 4 shares
So, it will be 4 in this case.
ER of small shareholders – 20% (4/20*100)
ER of other category – 20% (16/80*100)
Scenario – 2
Total shares – 100
Small shareholders – 5
Share buyback – 20
Reserved shares will be
20 (shares to be bought back) *15% = 3 shares
Actual entitlement = 5 (small shareholders)/100 (total shares) * 20 (shares bought back) = 1 shares
So, it will be 3 in this case
ER of reserver category – 60% (3/5*100)
ER of other category – 17.89% (17/95*100)
Please correct me if you find any mistake in my calculation.
Sirji, retail have to buy 8% stake which as you say is possible.
However, 8% of buying will most probably lead to appreciation in price as seen today.
However, as a penny stock it carries big risk in any case.
Sir ji what if retail starts buying a good amount of stake
and then operators dumps the stock on retailers
This is Possible. Even in their last buyback the price crashed after Buyback. For past many months the stock price was around Rs 125. The biggest risk in this Buyback is for the unaccepted shares. There are usually no byers in this scipt so slight caution is advisable.
The stock has doubled in about 2 months. It is possible that some of the buying has already happened.
As per the current shareholding as on 30 Sep 2023, total shareholders is 1193 and 91.63% are held by promoters and shareholders holding more than Rs 2 Lakh nominal capital (as below)
Promoters – 71.71
Ssk Scripts Pvt.Ltd – 4.46
Clairvoyance Energy Private Limited – 3.04
Investor Education And Protection Fund Authority Ministry Of Corporate Affairs – 1.1
Hina Kirti Doshi – 2.05
Mita Dipak Shah – 1.18
Niraj Mansukhlal Ved – 3.01
Sangeetha S – 1.87
Sapna Niraj Ved – 3.01
Single LLP – 0.2
Total – 91.63%
Out of the remaining 8.37% shares (3,06,342) some of them are large shareholders and some of them will not tender. Even if we assume all are small shareholders and all will tender the minimum ER will be 34.12% and I am hoping it will be more than 50% this time.
As per the distribution of the shareholders for 2018-19, the small shareholders hold around 3.213% share (after the buyback). Last time the buyback premium is around 10% and ER is 40% and AR is around 88%. Also, last time, shareholder get the decent chance to move out and as the AR is 88% so I hope it will be positive return at the end.
Note – I tried to search the distribution of the sharholders but it is not available anywhere.
I do not think this will happen. Even in the case of the last buyback the number of the retail shareholder does not increased. However, it will get reduced. The total number of shareholders as in Sep 17 is 1579 (before release of buyback new) and after declaration of buyback in Nov 17, the total shareholders is 1,377 (for Dec 17 quarter) and after completion of Buyback in March 18 the total shareholders in Mar 18 is 1406 (record date is in Jan 18). So, I am very positive this buyback will get a decent gain and you may not require to tender the shares as it is quite possible that the price will hit 350-360 before buyback.
Also, keep in mind, the board has the power to increase the buyback price.
Is the offer size really 19.2%
Exactly saying it is 19.04% as per their letter addressed to the BSE
Thank you srk ji for your confirmation. Have you considered taking a position in this stock for buyback?
Placed order for purchase of 150 shares @Rs.324/-. Order wasn’t executed. I don’t want to purchase above the price n above the number. Thank you n all the best.
Able to buy 235 shares @ 324.45 as all of my remaining funds are stuck in TCS, Somany, GNFC & INSPIRISYS.
Rohit ji, the position in INSPIRISYS is for the delisting play?
Yes, I bought it around 500 shares @ 76.45 as I am still trying to learn trading in case of delisting and open offers.
Moved out from INSPIRISYS today after a decent gain of 22%. As I am still learning delisting trading so do not want to take any further risk.
Good gain sir.
I find delisting & open offers very difficult due tot the long duration for approvals.
Rohit ji where can i find list of companies that are going to be delisted.
Takeover – https://www.bseindia.com/markets/PublicIssues/FIS_Takeover.aspx
Delisting – https://www.bseindia.com/markets/PublicIssues/IPOIssues_new.aspx?id=1&Type=D
OFS – https://www.bseindia.com/markets/PublicIssues/OFSIssuse_new.aspx
OTB – https://www.bseindia.com/markets/PublicIssues/AcqIssueDetail.aspx?Type=1
You have to keep an eye on the corporate disclosure as well.
Rohit ji do you participate in right issues as well.
No, most of the time my funds will remain blocked either in buyback or IPO, and if not then delisting (occasionally). I traded 2 delisting to date. The first one is ICICI Securities (which I still hold) and the second is INSPIRISYS (no open position as of now).
from where can we get this information ?
I hope it is very good buyback as more than 92% is held by large shareholders so I think ER will be around 35-40%. So I am taking risk. Just remember it is penny stock
Umesh Ji*
Sumit Ji, Thanks for posting. I missed this buyback. Just bought 250 shares.
Sir your analysis is quite impressive, I’m new to stock market ,I’m seen ur comments on buyback that u just buy share for buyback and sell regardless of profit or loss , do u use option to hedge stocks or how does it really work to get out in profit .
Hope to listen from u as soon as possible 🙏
Thanks for your message. I calculate ER and AR for the purpose of buyback and if seems favourable, I enter in the trade and tender shares in buyback.
ACTUAL ER: 24.36
Total 3752 small share holders.
There were around 1500 small share holders at the time of announcement
Massively increased before record date because of distribution sale by SSI