BHEL Buyback 2018

Bharat Heavy Electricals Limited (BHEL) is an engineering and manufacturing company. The Company is an integrated power plant equipment manufacturer, which is engaged in the designing, engineering, manufacturing, constructing, testing, commissioning and servicing a range of products and services for various sectors, such as power, transmission, industry, transportation, renewable energy, oil and gas, and defense.

It operates in two segments: Power and Industry.

In its Industry segment, BHEL provides a portfolio of products, systems, and services for power plants, power utilities, oil and gas, metallurgical and mining, and process industries, such as cement, fertilizers, sugar, and paper.

In its Power segment, BHEL supplies steam turbines, generators, boilers and its auxiliaries approximately 1,000 Megawatt (MW); Supplies hydro turbines and generators of approximately 250MW, and Manufactures 220/235/540/550/700MW nuclear turbine generator sets.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 06 2018
Buyback Opening Date: Dec 13 2018
Buyback Closing Date: Dec 27 2018
Buyback Offer Amount: ₹ 1628 Cr
Date of Board Meeting approving the proposal: Oct 25 2018
Date of Public Announcement: Oct 25 2018
Buyback Offer Size: 5.16%
Buyback Number of Shares: 18,93,36,645
FV: 2
Buyback Price: ₹ 86 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 18,93,36,645 (Eighteen Crore Ninety Three Lakh Thirty Six Thousand Six Hundred and Forty Five) equity shares of face value of Rs. 2 of the Company (representing 5.16% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 86 (Rupees Eighty Six only) per equity share payable in cash for an aggregate consideration not exceeding ~1628,29,51,470 (Rupees One Thousand Six Hundred and Twenty Eight Crore Twenty Nine Lakh Fifty One Thousand Four Hundred and Seventy only)

Salient financial parameters:

Items(Cr) 2018 2017 2016
Revenue 29,060.98 29,474.99 25,629.99
Other Income 693.05 726.4 1,450.08
Total Income 29,754.03 30,201.39 27,080.07
Net Profit 806.6 495.86 -913.42
Equity 734.28 489.52 489.52
EPS 2.2 2.03 -3.73
OPM % 8.16 5.01 -1.98
NPM % 2.78 1.68 -3.56

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Bharat Heavy Electricals Limited (BHEL) Buyback offer 2018 in demat or physical form as on the record date [06.11.2018] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [13.12.2018 to 27.12.2018] by selling your shares through your broker on NSE or BSE. 3. Then on [07.01.2019], 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 2325 Shares at CMP of Rs.68 [2,00,000/86=2325)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 2,00,000 2,00,000 2,00,000 2,00,000
(ii) No. of Shares buyback 767 1162 1744 2325
(iii) BuyBack Profit 13,806 20,916 31,392 41,850
(iv) Profit(%) 6.90% 10.46% 15.70% 20.93%

Recommendation:

Review and Recommendation of Bharat Heavy Electricals Limited (BHEL) offer 2018 by InvestorZone team is: 4/10 Fair: 1-5 Good:5-7 Excellent: 7-10

      I had tendered 15,000 shares, out of which 2,938 shares were accepted under Buyback. Hence the Acceptance ratio came around 19.587% for General category.

    Final Analysis of BHEL Limited 2018 ( Return Analysis)

    1. Buyback Announcement date: 25.10.2018—– Share Price was 68.

    2. 2325 Shares bought at Rs. 68 means an investment of 1,58,100.

    3. Retail Acceptance Ratio was 52.75%. i.e. out of 2325 shares, 1226 shares have been buyback by the company. Profit on Accepted Shares= 22,068

    4. The unaccepted Shares were given back on 07.01.2019. The share price on 07.01.2019 was 72. So if you sell remaining 1099 shares at 72, then a profit of 1099*4= 4396

    5. Overall we can say a profit of 26,464 on an investment of 1,58,100 in than 2 months.

    My entire 50 shares credited back. I applied for 50 shares and were holding 50 only. Why they not accepted my all shares or even part of that??

      Same happened with me.
      200 shared credited back 🙁

      I bought those 1st Nov and seems valid for buyback. Seems they preferred first come first serve 🙁

        No. It is not first come first serve. It is done on a proportionate basis.

        How many shares you applied and when did you buy those shares?

    527 / 1000 shares and Money got credited in Account this afternoon, After trading hours, Balance shares are able to see in Demat allocation.

      Look for upcoming opportunities. There is no point of looking at the old buybacks. Please keep an eye on Infosys. Its buyback is coming on 11.01.2019.

    Can a person earns in all the buyback ?
    Like for example in mphasis the difference in the rate was more ie if bought at 1200 the rate was at 980 rs

      By looking at buyback and enter into it (buying at higher prices) causes retailers may end-up with huge losses. It is safe once record date is announced, from that time if price difference room is at around 25% to 30%, possibility is 10K to 15K only. (majority people were in Huge losses in Mphasis is an example)
      As for as my personal experience, Invested for 260 Shares (180 + 80) in two accounts/two persons going to exit with 10K to 15K profit over all, only the reason is my entry price is 1050 to 1060 on an average.

      Similar way I have invested in Just dial 350 + 200 maintained avg price at 496 and also sold twice shares in 200 account twice booked profit 12K and going to get benefit Rs 300 for each on 11% acceptance ratio. remaining will sell at market price.

      In General this entire process is works on Hope but may not in Reality always.

      No. The govt has already done OFS in Coal India lately. So chances of buyback is less

    If I want to know which company has announced buyback … where on this website this information is available?

      Actually whenever company announce buyback update they will inform exchanges for the same.

    There are 2,84,00,497 shares in BHEL retail category, against which 6,28,13,494 shares have been received for the same.
    So the buyback ratio is 45.21%

    My 50 shares debited from my demat account but money yet not credited. When BHEL will credit it? Any info?

    One day left for the closing of the buyback.

    Total shares tendered till date in Individual Category( Retail + General Category) are close to 5.32 Cr.

    Total shares reserved for Retail Shareholder 2.83 Cr.

    So expect a bumper AR of more than 50% for Retail Category.

    Hi

    BHEL buyback is in progress. but the price is now where near the buyback price which is 86 rs/share. would you be able to share your analysis or reasons for the same

      BHEL price is 72, it is still far away from a buyback price of 86.

    I have applied for by over sight BHEL Buy back with out knowing the record date of holding through HDFC securities , and subsequently cancelledthe order in the next day , but the stock is not releasing , HDFC security telling it is not possible to release the hold , now i am unable to sell the share , i have confirmed with karvy computers , they are telling that no share is presented for by back as on today,
    please guide me how to go about it

      Now, these shares will be released on settlement date i.e. 07.01.2019.

    Hi, I have few BHEL shares in physical form and I don’t hold any demat account. Can I still tender the shares in buyback? If yes, what is the procedure.

      Buyback is possible for shares in Physcial form as well. You would have received a letter at your registered address with the details on the process to be followed.

    I have account only on NSE.
    My broker is saying I can tender share of BHEL only if I have account on BSE too.
    Is it compulsory to have account on BSE.
    How can i tender my share in buyback.

      What do you mean by I have an account with NSE, not BSE? These are Exchanges, not your depositories. In India, we have two depositories 1. CDSL and 2. NSDL. So your broker must be registered with either CDSL or NDSL. Please ask him clearly what he wants to say, so that we can help you out here.

        My broker is RK Global.
        I have 5210 bhel share
        Number of Equity Shares Entitled for Buy-back 238 and my depository is NSDL
        He told me that I have not registered on BSE .
        SO first I have to register with BSE than only he can bid for me to tender my share.

            following is the reply which I got from my broker
            Bhel buy back only executed in BSE, please open your account is BSE after that the same is possible.

            Can I tender my share by sending tender form by Post .
            or please tell my if there is any other process to tender share.

    Good morning sir I buy the 14000 shares of bhel . Can I get the buy back the shares of bhel. Reply me

      On 06.11.2018, the Price of the share was close to 70. As on record date, you are holding 14000 which accounts for (70*14000=9,80,000).

      Retail Investors is the investor who holds less than 2 lakh worth shares on Record Date, Else he will be counted under General category.

      Conclusion: You will not be counted under Retail Category but you can very well tender your shares under General Category.

    Good after noon sir , I buy the 14000 shares of the on 25th Oct. Can I buy back the shares

    on 2 nov i bought 100 shares and on 5 th nov i sold 50 ; 5th was ex date so i should be entitled as per 100 shares on 2nd nov but the mail says shares on record date 6 th nov as 50 ; who is wrong here ?

      There is no significance of Ex.Date in the buyback. It is just the Record date which matter. If your name is available in the company’s shareholding book on record Date, then you will be entitled to buyback.

        sir my question is different i will rephrase it
        6 th nov was record date .
        if i buy 100 share on 2 nd nov T + 2 comes as 6th nov shares held = 100
        if i sell 50 shares on 5 nov T+2 comes as 7 th nov ; shares held = 50
        so i should have got buyback on 100 shares but i got it for only 50 shares .
        why T +2 not worked here ?

          First of all, you can’t sell the shares until it comes in your demat account. If you purchased shares on 02.11.2018, then before 6.11.2018(T+2) you can’t sell as shares are still not credited in your demat. However, usually, Broker provides the facility of selling shares before T+2 by arranging the stocks in the background and later on adjust from your quantity. So this is what I feel must have happened in your case.

          I have faced the same issue with HDFC Securities. In this case HDFC transfers the shares sold on the same day (Ex Day) to some other account under Power of Attorney and hence you had only 50 shares on the Record Date. This is specific to brokers and their Clearing and settlements mechanism.

          I have another account with ICICIdirect and I have sold shares on Ex date and got the entitlement on the full amount of shares which I held the day before ex date equivalent to 100 in your example.

          By any chance this happened to you on HDFC Securities account too?

    I was holding 2900 shares as of record date. But how many shares should I tender for buyback so that I am eligible as Retail Investor?

      On 06.11.2018, the Price of the share was close to 70. As on record date, you are holding 2900 which accounts for (70*2900=2,03,000).

      Retail Investors is the investor who holds less than 2 lakh worth shares on Record Date, Else he will be counted under General category.

      Conclusion: You will not be counted under Retail Category but you can very well tender your shares under General Category.

    Entitlement Ratio is 18.3% for BHEL. The AR may be around 20-25%.

    I have purchased 2800 shares of bhel @70.3 and hold on record date
    Am i eligible to participate in buyback?

      If you have purchased before record date .ie before 6th Nov, then you are eligible.
      If you purchased on record date then you won’t be eligible.

    *DHANUKA AGRITECH LTD* .has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 14/11/2018 To consider a *proposal of Buyback of Equity Shares of the Company*

      Dhanuka’s share is falling continuously… will the buyback news held in falling of Share Price

    The Weizman Buyback just concluded has given 80k profit for 2 lakh application. For more info follow the link.

    https://investorzone.in/buyback/weizmann-forex-limited-buyback-offer-june-2018/

    The real reason was very few people were aware about the stock. Retail investors have never heard of such name as there is never a discussion of such stock in media.

    Though we were new at that time ao coudnt capitalise it.

    But now we can say with 100% Cent that such opportunities will not go unnoticed.

    The board of *Triveni Turbine* on Thursday approved a proposal for *buyback* at ₹150 a share for an aggregate amount not exceeding ₹100 crore, it said in a release to the exchanges. The buyback will be on proportionate basis and the resultant equity shares to be bought back with the maximum price is 66.66 lakh shares.

    The board of directors also noted the intention of the promoters to participate in the proposed buyback. Shares of Triveni Turbine closed at ₹102.90, up 1.03 per cent, on the BSE.

    Separately, the board of *Oriental Carbon & Chemicals* on Thursday approved a ₹35-crore buyback. It plans to buy back 3.04 lakh shares (assuming at maximum price) at a maximum price of ₹1,150 a share. Shares of Oriental Carbon closed 0.40 per cent higher at ₹1,056.85 on the BSE.

      Triveni Turbines…( Buyback at the Rs.150 upside of 47% from CMP of Rs.102)

      No. of Shares reserved for Retail Investors are = 10 lakh

      As per Annual Report, up to 31st March 2018, no. of shareholders holding 0 to 2000 Shares are close to 55 lakh and from March 2018 to Sept 2018 around 9 lakh shares are added. Therefore, we can assume that no. of shares for the retail category will be close to 65 lakh.

      So on that basis Acceptance Ratio would be 15%.

      Oriental Carbon & Chemicals…( Buyback at the Rs.1150 upside of 8% from CMP of Rs.1056)

      Not much upside and size of the buyback is also very small.

    I hope, for calculation purposes instead of considering 86 as the denominator, we need to consider 68 (cost price) for arriving correct profit (%). (Assuming, no change in the CMP till the buy back period).

      86 is used as a denominator for the purpose of safety to be eligible under Retail Category. If you buy shares worth Rs.2 Lakh by considering Share price at Rs.68 then you will not be eligible under Retail Category once price moves above 68.

      Hope You understood.

      Keep Sharing thoughts and keep Learning.

    *OFS – COALINDIA*
    Issue Date 31.10.2018 and 01.11.2018
    Exchange NSE/BSE
    Symbol COALINDIA/533278
    Bidding Through Trading CTCL Platform
    Time 9:15 AM TO 03:30 PM
    Floor Price Rs.266
    Total Shares 186222275
    Total Value 4954 Crores
    Discount 5% on Retail

    Oriental Carbon & Chemicals Ltd. – Corporate Action-Intimation of *Buy back* – meeting to be held on Thursday, 1st day of November, 2018.

    Flash NEWS: NATCO Pharma Gains 5% as Board to Consider Buyback on 5.11.2018

    BHEL has not performed well in past. The Company’s inability to diversify its business on time has made BHEL a laggard as compared to its peers. Now in future, whether BHEL able to deliver or not would be interesting to see.

    Every Investor should not buy shares just because the company is coming up with an buyback plan.

    Investors must study the company they wish to invest in and take a decision based on its ability to generate profits.

    In some rare cases, buybacks are announced to trigger certain favorable movements (anticipation of an upward movement in stock price).

    It is important to look at the size of the buyback offer, the buyback price and the duration of the offer. This is because if the buyback size is too small compared with the overall market capitalisation of the company, the impact on the stock could be very small.

    As on March 31, 2018, BHEL had Rs 11291 cr of cash & cash equivalent on its books. The Government of India holds 63.06%, while Life Insurance Corporation (LIC) holds 9.42% in the company for the same period.

    BHEL Approves Buyback up to 189.3 Million Shares and Rs. 86. 20% Premium to CMP.
    Acceptance Ratio Calculation:
    No. Of Shares Reserved for Reatil= 2.83 CR
    As per Sept 18 shareholding pattern, the number of investors having shares up to 2 Lacs of paid-up Capital is close to 15 CR.
    As per the above figure, the Acceptance Ratio would be 18%