Coal India Buyback 2019
(i) Coal India Limited (CIL) state-owned coal mining corporation came into being in November 1975 With its normal production of 79 million tonnes (MT) in the year of its establishment.
(ii) Coal India Limited is today the world’s largest coal producers. CIL is a top body spreading through 8 mining areas, 7 fully owned coal producer subsidiaries and 1 mining scheme and consulting company spread across 8 provincial states of India.
(iii) CIL manages 200 other establishments such as workshops, hospitals. In addition, there are 26 technical and management training institutes and 102 vocational training institutes. Indian Institute of Coal Management (IICM), a state-of-the-art management training as ‘Excellent Center’ – is run by India’s largest corporate training institute – CIL and conducts multi-disciplinary management development programs.
(iv) CIL is a Maharatna Company – the privilege of the Government of India for the expansion of state-owned enterprises and emerging as a global giant. It is one of the few selective concepts in the category of central public enterprises in the country.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Feb 15 2019 |
| Buyback Opening Date: | Mar 01 2019 |
| Buyback Closing Date: | Mar 15 2019 |
| Buyback Offer Amount: | ₹ 1050 |
| Date of Board Meeting approving the proposal: | Feb 04 2019 |
| Date of Public Announcement: | Feb 04 2019 |
| Buyback Number of Shares: | 44680850 |
| FV: | 10 |
| Buyback Price: | ₹ 235 Per Equity Share |
Details of Buyback:
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,88,936 | 1,88,936 | 1,88,936 | 1,88,936 |
| No. of Shares buyback | 280 | 425 | 638 | 851 |
| BuyBack Profit | 3640 | 5525 | 8294 | 11063 |
| Profit | 2% | 3% | 4% | 6% |
Recommendation:
63 Comments
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Coal india dividend declared Rs 5.85 per share. Those who buy till march 21.are entitled to get it.
CMP is 244 but Bids for buyback @235 have reached to more than 100% and 4 days to go, dividend will be declared on 14.03.19,
Now buy, hold or sell?
Better to exit at CMP if you have bought for the purpose of Buyback.
@marketwizard,
I have already sold shares at 240. Was thinking to buy again at 231 and tender in buyback.
Ok. Then please buy below 230.
Is it possible to rebuy and tender in buyback? I was holding on record date and sold recently.
Yes.
I was holding 1000 shares, that was above 2 lakhs. I won’t fall in retail category in that case. Which category I will end up with.
General category
Hi MW,
I had 500 shares at the time of record date, can I tender more than 500 (say 800) shares in buyback?
Also would you recommend to buy more at 231?
1. You can’t tender more than 500 Shares.
2. Why didn’t you sell the Coal India shares when it was 242. Why did you wait for buyback at 235?
Investors can now sell at-least 70% of their shares today why can not sell 100 % if sell 100 what happen
Should we buy it now?
Please keep an eye on Coal India, if the price fall below 230, grab with both the hand.
Coal India Cash and March future difference is 6 Rs. Dividend around the corner.
Strange……
Buyback price 235…………….. current CMP 242
still individuals tendering shares to buyback for Rs. 235
At 12.00pm tendered shares by Individuals —– 121511
At 3.00pm tendered shares by Individuals —– 165370
haha!!! that is funny!!
Share price of Coal India may go above 235 after buyback 15.03.19 like NMDC
Crosses 235. CMP 239
Investors can now sell at-least 70% of their shares today who bought for Buyback. If the price falls around 225 level then they can again buy and tender their shares.
Investors can now sell at-least 70% of their shares today why can not sell 100 % ?
That message when the share price was around 230. Now you can sell all your shares.
I am yet to get an email about tendering. I purchased shares on 12th Feb 2019.
you can view your entitlement on registrars (alankit) website & also can download letter of offer, tender form by submitting your dp id & client id
Link for download offer letter & tender form
https://www.alankit.com/
http://14.142.94.197/cilbuyback/
Link for download offer letter & tender form
14(dot)142(dot)94(dot)197/cilbuyback/
Coal India at 229. Those who bought between 205-215 levels just for the sake of buyback must exit at least 50-60% position of their Shares.. So AR above 50 % is expected in coal India if price remains above 230 for some more days
coal india buyback tender download side 2019 plz
Letter of Offer for coal India
https://d2un9pqbzgw43g.cloudfront.net/main/27a45357-c066-409d-8b43-7767762918b1.pdf
Entitlement for Retail= 4 out of 53 shares will be entitled(
Entitlement ratio= 7.54%
Once again more than 75,000 people bought the shares with the sole purpose of tendering in the buyback. There were 6,000,00 shareholders upto 2lakh shares in Dec 2018 which increased to 6,720,00. since size of Coal India buyback is one fourth of ONGC and IOC. Don’t expect much shares to be accepted from entitlement. Lets see. The other thing is when will board meed for March 2019 dividend when will the record date of interim dividend be. Hopefully it should be after the settlement of buyback is done.
What is the entitalment Ratio of the for coal India….
I think the tender date is March 01, 2019 to March 15, 2019.
I had 3000 shares on record date, will I be considered as retail investor if I tender only 851? I am assuming acceptance ratio will be more in retail category , not sure if i’ll be considered as one though.
You will be not be considered in Retail Category.
Please replace NMDC with COAL INDIA in point 1 of how to participate in buyback
Those who are eligible for buyback are selling today. Now these investors will wait till the date of announcement of Entitlement ratio and based on that they will buy it again. So next surge in price as far as buyback is concerned will come after the announcement of Letter of Offer.
Also there will be huge selling pressure because of Bharat 22 also The price might fall to 200 levels 🙂
Ye hum sahi me kar sakte he kya..
Me bhi coal India sell karna chahta hu.
Bad me buy karunga to tender ke liye eligible hu ga ke nahi…..
Record date is 15/2. If I buy today on 14/2, will be eligible for buy back ?
no.
If i buy today ? will my shares eligible for buyback ?
Yes.
Q3FY19
Revenue- 25,046 Cr
Profit- 4567 Cr
EBITDA- 6788 Cr
Margin- 27.1%
Coal India Results
https://www.bseindia.com/xml-data/corpfiling/AttachLive/99988c22-34a7-4b7f-bb15-39108bf7ab63.pdf
Suppose if somebody has bought coal India share before at the rate higher than 235 rs… is it worth tendering the shares in buyback ie by the time company credit the amount for the bought shares … rate of coal India will be down
If you have bought above 235 and you want to get exit from the stock, then it is a golden opportunity to participate in the buyback and tender your shares.
Don’t want to exit from the shares… want to buy at the lower rate
Then 215 is a good rate to enter for buyback perspective.
Investorzone : please add sqs india bfsi in buyback section
Expected AR Calculation
1. Total Shares reserved for Retail Category= 67 Lakh
2. Total Shares up to 2 lakh as per Dec 2018 Shareholding pattern = 10 Cr
3. So AR based on this would be = 6.7%.
Final Acceptance Ratio may be higher as investors are looking less interested in the buyback.
Current Market Price closing 05.02.2019 is 216, the Buyback Price is 235, that means an upside of 8.79%. The Risk Savy Investors can take participate in the buyback as it is a Govt PSU buyback which will be completed in 1-2 months time easily.
Retail Ratio?
was expecting a price of 250. really disappointed with the buyback.
Sir plz tell how muchExpected acceptance ratio ?
CMP ——— 222.05
Buyback price ——— 235 (5.90% from CMP)
Total buyback ———————————————————————— 4,46,80,851 approx.
Reserved for small shareholders ————————————————- 67,02,127 approx.
shares holding by small shareholders as on 30th Sep 2018 ——— 9,63,40,492
sir maine 7 account me 5600 share aaj by kiya he by back ke hisab se 223 me by back kitna percantage lenge aur me kya karu pls advice
Buyback price @235₹
Friday 15th feb record date
1050cr..size
Disappointing price. Management should have thought of 240.
Buyback Size seems to be very small approx 0.75%
Sir I am holding 180 CIL shares at Rs252/average.Shall I accumulate further for buyback.pl advice.Thank you
*Coal India likely buyback size Rs 1,065 crore* and nearly 72 percent of the amount will go to the government.
The buy back exercise will take place in two steps, the sources said. “First, Mahanadi Coalfields Ltd, South Eastern Coalfields Ltd and Northern Coalfields Ltd (all CIL subsidiaries) will buy back their shares worth Rs 355 crore each from the parent,” one of the sources said.
Thereafter, Coal India will buyback own shares from shareholders out of its free reserves worth Rs 1,065 crore.
Sir, should we start accumalating
Yes. But on SIP mode as we do not know at what price the buyback will come. Maybe it can come at last time OFS price of 255.