HEG LIMITED BUYBACK 2018
HEG Ltd, a premier company of the LNJ Bhilwara group, is today India’s leading graphite electrode manufacturer. It has one of the largest integrated Graphite Electrode plants in the world, processing sophisticated UHP (Ultra High Power) Electrodes.
The company exports over 70% of its production to more than 30 countries of the world.
The position the company enjoys today in India and abroad is largely due to its commitment to constant up-gradation of its product quality to match international standards and to meet new challenges to win and excel in all situations.
In Graphite, their focus is on UHP grade electrodes, and they have expanded their product range and established the same on some of the toughest furnaces for their customers. Today, they have years of experience in supplying quality UHP grade electrodes all over the world.
The encouragement from their customers has led them to increase production capacity and become a significant global producer of quality UHP grade electrodes for EAF application. The ability to source the best raw material from sources worldwide and the skills of human resources has been the key to the growth of the company.
To maintain the competitiveness, they have set up a Captive Power Plant totaling more than 77 MW.
As a responsible graphite electrode manufacturer, they continue to invest in technology, development of new products environment and in the human resources.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Feb 09 2019 |
| Buyback Opening Date: | Mar 08 2019 |
| Buyback Closing Date: | Mar 22 2019 |
| Buyback Offer Amount: | ₹ 750 Cr |
| Date of Board Meeting approving the proposal: | Nov 26 2018 |
| Date of Public Announcement: | Nov 26 2018 |
| Buyback Offer Size: | 3.41% |
| Buyback Number of Shares: | 13,63,636 |
| FV: | 10 |
| Buyback Price: | ₹ 5500 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Year | Revenue(Cr) | PAT(Cr) | EBITDA Margins | Profit Margins | EPS |
| FY16 | 870 | -7.55 | 16.28% | -0.87% | -1.92 |
| FY17 | 859 | -50.05 | 10.40% | -5.83% | -12.52 |
| FY18 | 2,748 | 1081 | 62.00% | 39.34% | 270 |
| 6MFY19 | 3371 | 1658 | 76% | 49.1% | 414 |
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 | 1,56,888 | 1,56,888 | 1,56,888 | 1,56,888 |
| No. of Shares buyback | 12 | 18 | 27 | 36 |
| BuyBack Profit | 13704 | 20556 | 30834 | 41112 |
| Profit | 9% | 13% | 20% | 26% |
Recommendation:
382 Comments
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HEG already touched 1541. Will it bounce back? what is the reason now for it’s continued decline?
The reason is QoQ revenue downfall. Actually, HEG and Graphite story was booming due to a ban on Graphite Industry in China. Now the situation is normalizing in China and the effect of which is seen in Profitability and Margins of HEG and Graphite. Don’t think that HEG and Graphite will give the same return that they have given in the last 2 years.
Dear MW
Could you please give us direction on HEG at these levels as it seems that it will never bounce back and every day creating a new lower level. Are the fundamental s went wrong. Do we see this again at 200 level. As of now I am in -40 k loss. Please advice
There is a China concerned. There is news in the market that China this year or by next year will open up closed Graphite factories. The HEG and Graphite India were enjoying margins due to supply pressure from Chinese companies. However, I still feel you should carry HEG with a stop loss of 1500 and wait for the results. We will catch it again after results announcement.
@market wizard since HEG is towering down what call should i take? sell them already 10k loss.Whats the reason for down trend?
Wait for an upswing.
I have tendered 800 HEG shares for buy back on around 11th March 2019 through HDFC Securities trading account 1438809.
I have not received any amount for buy back and I don’t know how many shares were accepted by HEG.
Please check and do the needful.
Hi,
For HEG Buy back i was holding 1 tendered 1 share , contract note by ICICI was genearted for the same. but so far i have not got the money credited into my account.
Can any one please help how to deal with this,
Thanks
Some1 told me there is buyback in Honda Siel Power. Is it true ? Is it a good time to buy it?
Accepted 1 out of 10, My buying price was 2421/- per share, Now what to do with balance 9 shares. Hold or Exit. Anyone please suggest…………………….
price may rise….hold for 1 week
Holding 84 shares average 2200/- ( below 200,000/-)
HEG offered to buyback 8 shares @ 5500/-
Tendered 64 shares
Accepted 8 shares. …!
Not even 1 share extra. AR around 10% only for this investment.
Current price around 2100/-
Nothing special advantage unless I sell everything (as what company operators want) now…
Entirely a operator driven stock.
As per me ?
STAY AWAY. EXIT & INVEST IN PROFESSIONAL company..
100% agreed upon view of operator driven stock, for more confirmation just checkout 28th march,2019 price,volume & delivery %
The updation of stocks in your demat account(s) during buyback by the registrar is done purely on the basis of your pan no. . You must be having both the accounts having 1 share each in same name under same pan no.
I had offered for buyback from my zerodha and upstox account, each containing one share. However I just received money for one stock, don’t know from where . But, I got a mail from HEG with my client ID for my upstox account which says I had applied for 2 and received one, whereas I didn’t have 2 stocks in my upstox account. Could anyone help?
Money got credited today for ONE account.
for Other account not yet, showing only deducted shares in buyback.
I had offered 5 shares for buyback.
Got message that 5 shares have been debited from account, however received only Rs 5,500/- what is the logic ?
1 share accepted. rest will be returned back.
Thanks
Any upstox user here? My zerodha one got accepted, no mail neither money from upstox?
HOW TO CONFIRM ON ZERODHA?
Single share in all five demat account accepted.
Money also credited.
100% profit.
Hurray
wah.
wah!!! nacho!!!
How much had you bought all of them for? I think everyone with a buying price of 4000 up got accepted.
Lucky enough all shares were bought below 2500
Great
MW can you confirm if every investor with single share got the share accepted
Or it is also luck for some
What does that mean?
Heg acceptance ratio for single share is 17:25
I had 19 shares
So by your logic 2 should have been accepted
I got mail saying trading 1 share and order placement 11 shares offer sell
What does it mean
That means those having atleast 10 shares as on record date got buyback of 1 share.
BB acceptance is 10% only
Yes BB acceptance is 10% only for Reserved category. I have received the contract note and settlement is tomorrow .
I heard that acceptance may be finalized by today evening and we may get communication by end of the day.
Yes. By evening we will get the info.
ok please update here regarding AR and etc. by time
Yes please also update about single share acceptance. Thank you!
Acceptance is 10% only
Did single share get accepted?
Believe it is 17:25
I’m not sure what that means. Could you explain?
out of 100 ppl holding 1 share in demat , shares of 17 ppl are accepted (holding 1 share only)
Did anyone get a mail about acceptance of shares? No mail for me yet!
I have 1 share of heg in my demat account. Can it consider for buyback or not plz replay
60 to 100 percent chances of acceptance of single share.
Reasons for this:-
1. Fractional benefits goes to these shareholders first. Eg holder of 49 shares was eligible for 4 shares not 4.9.
2. More than 50000 have not tendered their different shares in buy back. 0 eligibility sh will get preerence first from these.
3. SH of single digit shares have volume.
yes there are chances of acceptance of single share.
yes there are chances of acceptance of single share
As per the layest update of 46 lac bidding in retail individual category asgainst 2.04 lac reserved , what does it look like, what will be the acceptance ratio ???
How 46 lac shares can be tendered when the aggregate sh under reserved category is only 20.42 lacs?
Is there any chance a single share in demat with zero entitlement will get accepted at this stage?
no
60 to 100 percent chances of acceptance of single share
With over 1620000 distinct orders. It is highly unlikely that any extra share would be accepted beyond the entitlement.
How there can be 1620000 distinct orders if the total number of share holders for HEG is only 1,23,849?
Will there be buyback of any extra shares ? brought 70 @2536 now 6k loss ? Shall i hold ?
Please tender all the 70 shares in the buyback and hold the unaccepted shares and sell when the share price comes near 2600.
I have received a msg that my CDSL account is debited with the number of HEG shares……so that means my share have been accepted for the buyback
No. It means whatever shares you have tendered have been taken in the system successfully. Now within a week depending upon the Final Acceptance Ratio the shares will be accepted and un-accepted shares will be credited back to your demat.
Hi,
I have 57 shares at 4200Rs avg. I am entitled to shares in buback, can I trade in all 57 ? Will it effect my minimum 5shares
Did you already participate in buyback?
You should tender all the shares because additional shares tenders will be considered for AR ratio.
in ” letter of offer” form there is one section – 8. NECESSITY FOR BUYBACK, point number – (iv) there is option A and option B. – what is mean by this. if i am not opting for the buyback get a % increase in share holding etc…. . what is the % how it calculate?
As buyback indicates company return its shares from shareholders. After buyback total shareholding of the company changes (reduced by buyback no. of shares).
eg.
Total shareholding before buyback ———– 3,99,59,142
Total buyback (General + Retail) ————— 13,63,636
Total shareholding after buyback ———– 3,85,95,506 (reduced by 13,63,636)
so, if anyone holds 25,00,000 shares
his holding in company before buyback is 6.256% (2500000/39959142)
If he does not participate in buyback then
his holding in company after buyback is 6.477% (2500000/38595506)
It only matters for those who holds large no of shares, as there voting rights % increases, for retailers/small shareholders it doesnt really matters.
thanks for reply and time you spend for the same.
@Saurabh – i think the share price will increase next week since all of them who sold the shares after the record date will be trying to buy the required number of shares for them to participate in the buyback.
@MW – pls correct me if i am wrong…
I hold 40 shares ( Bought at 2500 ) . Minimum 4 will get accepted in buyback .
Considering huge different in current price ( 2200 ) and buyback price price of 5500 , its unlikely that entitlement ratio will go up..
Still keeping buffer in mind, i am thinking of tendering 10 out of 40 shares and keep rest 30 shares for selling in market trade .
Please suggest if this approach is correct .
This is my first buyback .
Any dividend etc proposed? Should we tender our shares now?
even though subscrition ratio is more some times few companies took more shares than expected.How is it possible ?
As per the acceptance ratio calculation given in draft offer, is it more probable for shareholders holding 1 share to be given priority?
I only have 3 shares, My entitlement for buyback was 0 in email received from HEG.
So, even if I sell 3 shares at buyback, will it be accepted / on what basis?
Acceptance will be depend on total entitled & additional shares tendered by retailers.
Scroll below for my comment posted (March 4, 2019 8:11 am) on query about buyback acceptance by Mr Ramesh (March 3, 2019 10:31 pm)
Hi ,
I hold 3 shares of HEG before record date, but in email by HEG the entitlement shares is 0.
Can I still sell the shares for buyback….??
Thanks in advance for being active & helpful..
Yes, you can tender max 3 shares
Thanks P M.. !! 🙂
My entitlement for buyback was 0 in email received from HEG. So, even if I sell 3 shares will it be accepted/ on what basis?
Acceptance will be based on total tendered shares
if acceptance comes more than 33% then 1 share will be accepted
If it is more than 66% then 2 shares will be accepted
Hello .
I hold 40 shares. as per 10% entitlement , minimum 4 shares will be accepted .
During this buyback period( say today ) , if i sell 30-35 shares , will those 4 shares be accepted in buyback
Yes.
Thanks .
To confirm again.. if i sell 36 shares today ( via market trading ) … and then tender left 4 shares in buyback , will all 4 shares get accepted ?
Also .. what will happen if i tender all 40 shares in buyback…
and then next day – sell half of them in market trading
If u tender all 40 then u won’t be able to sell if they will be freezed
Yes 4 will be accepted
Hi,
I am holding 180shares but yet to receive any email. Does it mean not eligible for this buyback? Thanks
If you have bought shares on or before 6th Feb, you are eligible in general category (3% i.e. 5 shares entitled)
you can check entitlement details & download Letter of Offer, Tender form by submitting DP ID & Client ID / PAN No. from
https://www.linkintime.co.in/Offer/Default.aspx
Thank you
Experts please let us know your opinion.
Entitlement ratio is 10%, imagine many of the retailers holding single digit shares, their Entitlement shares are “Zero” if their % is may be 5% to 10% retailers quota, in that situation those who holds more than 50 and if they tendered all, their % of acceptance may be 15% to 20%.
what do you say?
Its just a wild guess..
Buyback acceptance Process
1. Entitled shared tendered confirmly accepted.
2. If 100% entitled shares tendered, buyback over.
If 100% entitled shares not tendered, short shares calculted
reserved shares – entitled tendered = shares left for buyback
1. Those shareholders who entitled 0 & tendered there as additional shares, 1 share accepted.
2. If reserved quota complete, buyback over
If still shares remain to buyback as reserved quota
1. Additional shares tendered ratio calculated from short shares to buyback as
shares left to buyback / total additional shares tendered = ratio for additional shares
2. Additional shares accepted as per ratio
eg. additional ratio 15%
additonal tendered ——— additional entitlement ——— additional accepted
—— 9 ——————————– 1.35 ——————————– 1
—— 11 ——————————– 1.65 ——————————- 2
Fractional result for acceptance of additional shares
1. more than 0.50 converted to 1 (eg. 1.80 = 2 or 0.70 = 1)
2. less than 0.50 ignored (eg. 1.40 = 1 or 0.45 = 0)
Buyback entitlement & acceptance process completely described in letter of offer # page 41 – 43
Thank you PM.
Will happen if those with single digit doesn’t tender shares
Then acceptance could be more than 40%
If single digit(less than 10 shares) also tender
Then everyone will be at loss
Hi PM,
I am currently residing in USA and got the letter og buyback. I saw a note that if country of residence is usa we cannot participate in buyback, is my understanding correct? Need help as to hos i can tender 5 shares if my broker is icicidirect. Appreciate your help
As per Letter of Offer:
The Buyback of Shares from Non-Resident Shareholders Overseas Corporate Bodies (OCBs) and Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs), and members of foreign nationality, if any, etc., will be subject to approvals, if any, of the appropriate authorities, including RBI under FEMA, as applicable.
It is the obligation of such Non-Resident Shareholders, to obtain such approvals and submit such approvals along with the tender form, so as to enable them to tender equity shares in the buyback and for the Company to purchase such Equity Shares, tendered. The Company will have the right to make payment to the Eligible Shareholders in respect of whom no prior RBI approval is required and not accept Equity Shares from the Eligible Shareholders in respect of whom prior RBI approval is required in the event copies of such approvals are not submitted.
17.4 By agreeing to participate in the Buyback the Non-Resident Shareholders give the Company the authority to make, sign, execute, deliver, acknowledge and perform all applications to file regulatory reporting, if required, including FC-TRS form, if necessary and undertake to provide assistance to the Company for such regulatory reporting, if required by the Company.
For Tax purpose:(DTAA Applicable in India with the US)
Non – resident shareholders can avail beneficial provisions of the applicable DTAA entered into by India with the relevant country in which the shareholder is resident, but subject to fulfilling relevant conditions and submitting necessary documents prescribed under Section 90(4) and 90(5) of the Income Tax Act.
From the Above, it is clear now you can participate in Buyback. However, your participation is subject to the approval of RBI under FEMA( Foreign Exchange Management Act) as this is the clear cut case of Foreign Exchange. So you need to contact the ICICI Direct they will provide you with the forms need to be filed along with a tender form for participation in the buyback.
Thank you so much for providing detailed clarity. Appreciate your time and help
I have received the email from HEG for 5nos as entitlement. My qurries:
1. Can I offer 30 shares for buy back?
2. Where to submit the tender for for D mat holdings?
3. Can the shares be tendered in on line mode? If yes , How?
1. Max shares you can tender is your holding on record date
2. If your broker provide buyback window in your trading ac, you can tender shares directly in buyback window
3. If your broker does not provide buyback window, submit tender form to your broker.
Letter of Offer & Tender form can be downloaded from
https://www.linkintime.co.in/Offer/Default.aspx
Tendering shares through DP account is enough? or should we fill and send tender form (which is sent by email)?
If tendered thorugh buyback window in trading ac, no need to send tender form
It is enough
Holding 10 shares received offer for 1 share…………
Received HEG email. Entitlement only 3% ☹️
I hold 150 units
Hello all
No. of Equity Shares held by you on Record Date being February 09, 2019 – 1
Entitlement for Buy-back Offer in terms of no. of Equity Shares – 0
Does this mean that I cannot tender my one share? Thanks
Even your entitlement is 0, you can tender your shares, acceptance depend on total shares tendered by retailers
But very slim Chances as explained earlier by you
If they don’t tender shares then it will be boon for shareholders having more than 10 shares
Hello all
No. of Equity Shares held by you on Record Date being February 09, 2019 – 1
Entitlement for Buy-back Offer in terms of no. of Equity Shares – 0
Does this that I cannot tender my one share? Thanks
You can but there will be no benefit
heg letter of offer; retail investors 10% accepatnce ratio.
Entitlement ratio 10%. Acceptance may be better.
there may not be much difference between entitlement & acceptance as buyback price is all time high & more than 250% higher from CMP
SUBJECT: CASH OFFER TO BUYBACK UPTO 13,63,636 (THIRTEEN LAKH SIXTY THREE THOUSAND SIX HUNDRED AND THIRTY SIX) FULLY PAID-UP EQUITY SHARES OF FACE VALUE OF ` 10/- (RUPEES TEN ONLY) EACH, REPRESENTING APPROXIMATELY 3.41% OF THE TOTAL NUMBER OF EQUITY SHARES IN THE ISSUED, SUBSCRIBED AND PAID-UP EQUITY SHARE CAPITAL OF THE COMPANY AS AT 30 SEPTEMBER 2018, FROM THE SHAREHOLDERS / BENEFICIAL OWNERS OF EQUITY SHARES OF THE COMPANY AS ON THE RECORD DATE I.E. FEBRUARY 9, 2019 ON A PROPORTIONATE BASIS, THROUGH THE “TENDER OFFER” ROUTE AT A PRICE OF ` 5,500/- (RUPEES FIVE THOUSAND FIVE HUNDRED ONLY) PER EQUITY SHARE FOR AN AGGREGATE AMOUNT NOT EXCEEDING ` 750,00,00,000/- (RUPEES SEVEN HUNDRED AND FIFTY CRORE ONLY).
Dear Shareholder,
With reference to above, please find below the details of Equity Shares held by you as on Record Date i.e. February 09, 2019 along with entitlement for your information:
Folio Number/ DP or Client ID
No. of Equity Shares held by you on Record Date being February 09, 2019
Entitlement for Buy-back Offer in terms of no. of Equity Shares
1201060000863268
60
6
That is the content of my email.
Received email as letter of offer. I am holding 60 shares in record date & 6 shares are confirm for me.
1:10.
I had 19 shares and entitlement is just 1
Why
fractions are ignored in entitlement
19.6 Fractional entitlements
If the entitlement under Buyback, after applying the above mentioned ratios to the Equity Shares held on Record Date, is not a round number (i.e. not in the multiple of 1 Equity Share) then the fractional entitlement shall be ignored for computation of entitlement to tender Equity Shares in the Buyback Offer, for both categories of Eligible Shareholders
for 10 shares the Entitlement is 1.
so for the shares between 1-19, the entitlement will remain 1 only.
if you were holding 20 shares then it would have been 2.
Happened with me
I hold 19
Heg buyback
Retail entitlement – 1 for 10 shares held
Non-retail – 7 for 229 shares
Huge increase in the number of Retail Shareholders. The number of retail shareholders (~ 2.19 lakh) is more than total number of shares reserved for Retail Category (~ 2 lakh).
For sure people who are surrendering not a single share will be accepted beyond the entitlement and very few people holding 1 share will be able to dispose their share in the buyback.
5 shares entitlement for 51….does it mean atleast 5 shares will be accepted?
yes 5 shares confirmly accepted, additional (if tendered) depends on total shares tendered by retailers
Dear MW, Could we predict 15% acceptance ration in BB ? Are there any influential factors dragging the share to low’s ? Please guide us if there is any specific strategy to come out as i had bought the share @3750. Thank you, MW
Let us wait for the ” Letter of Offer ” to come to know the minimum Acceptance Ratio, the same will come in a couple of days. The AR will be low as there is a huge difference in current market price and buyback price. The AR may be in a range of 10-15%.
Influential Factors- Please read the report here which was published by CNBC in Dec 2018, regarding China carbon industry to face severe overcapacity -association.
https://www.cnbc.com/2018/12/22/reuters-america-china-carbon-industry-to-face-severe-overcapacity-association.html
In this article, it was clearly mentioned that:
“ China is expected to have graphite electrode capacity totaling 1.5 million tonnes by 2020, up 66.7 percent from 900,000 tonnes in 2017, said Sun. That will exceed the demand of fewer than 800,000 tonnes in 2020, he added.”
The HEG rose to glory because of shutting down of Electrode manufacturing plant in China which were producing Electrodes by a conventional method of Blast Furnace technique which was causing a lot of pollution. But now China has slowly shifted to a new method of EAF which definitely reduce the demand going forward. Secondly, the Prices of Electrode are already at peak, so going forward margins won’t rise from here on as we have seen in the last 2 years.
Strategy, try your luck in buyback first. Then hold remaining shares with a stop loss of 1500 as we have seen in the past if any positive news comes to these shares they zoomed to 20-40% in no time. Try to exit position whenever good news comes.
Thank you so much, Dear MW
Dear MW,
Could you pl tell us when we can know the tentative acceptance ratio of HEG? Will it be during BB tendering time period?
Is buyback accepted by sebi.any news..
confirm
HEG buyback to open on 8th march. Confirmed
Is Heg BuyBack news confirm that it will open on 8 March and Close 22 March. ?
Dear PM/MARKET WIZARD
for e.g. i have 10 shares in 10 different d-mat account each 1 account consists 1 share of HEG LTD and i apply for buy back from all accounts then what is probability of not acceptance for buy back?
thank you.
The probability of 1 shares acceptance in HEG is very thin.
To the best of my knowledge & experience SEBI made it compulsory for all listed co. to accept atleast 1 share in buy back for each identical d-mat account.
1. If all demat with same PAN, then it is clubbed & then entitled as per ratio
2. Atleast one share is not a rule, preference will be given to those entitlement is 0 and tendered their shares if all entitled shares not tendered
Draft letter of offer page # 53
19.7.1 Full acceptance (100%) of Shares from Small Shareholders in the Reserved Category who have validly tendered their Shares, to the extent of their Buyback Entitlement, or the number of Shares tendered by them, whichever is less.
19.7.2 Post the acceptance as described in paragraph 19.7.1 above, in case, there are any Shares left to be bought back from the Small Shareholders in the Reserved Category, the Small Shareholders who were entitled to tender zero Shares (on account of fractional entitlement), and have tendered additional Shares, shall be given preference and one Equity Share each from the additional Shares tendered by these Small Shareholders shall be bought back in the Reserved Category.
Draft letter of offer page # 55
19.11 Clubbing of Entitlement
In order to ensure that the same shareholders with multiple demat accounts/ folios do not receive a higher entitlement under the Small Shareholder category, the Company will club together the Equity Shares held by such shareholders with a common PAN for determining the category (Small Shareholder or General) and entitlement under the Buyback. In case of joint shareholding, the Company will club together the Equity Shares held in cases where the sequence of the PANs of the joint shareholders is identical. In case of Eligible Shareholders holding Equity Shares in physical form, where the sequence of PANs is identical and where the PANs of all joint shareholders are not available, the Company will check the sequence of the names of the joint holders and club together the Equity Shares held in such cases where the sequence of the PANs and name of joint shareholders are identical. The shareholding of institutional investors like mutual funds, pension funds / trusts, insurance companies, etc. with a common PAN will not be clubbed together for determining the category and will be considered separately where these Equity Shares are held for different schemes and have a different demat account nomenclature based on information prepared by the Registrar as per the shareholder records received from the Depositories.Further, the Equity Shares held under the category of “clearing members” or “corporate body margin account” or “corporate body – broker” as per the beneficial position data as on Record Date with common PAN are not proposed to be clubbed together for determining their entitlement and will be considered separately, where these Equity Shares are assumed to be held on behalf of clients.
thank you so much bro. fro resolving my whole concept/query. you are great. happy to learn more.
Dear Market Wizard,
Would you pl like to highlight this issue that record date of Ajanta Pharma was 12th Feb but today it got approval letter from SEBI, whereas HEG did not received any approval of buyback when it’s record date was 9th Feb? Do not understand this.
There is no such correlation between Record Date and publishing the ” Letter of Offer “. Every company deals differently. SO ya wait for some more time, I think in the first week of March the letter of Offer will come.
Is entitlement ratio & acceptance ratio for buy back is synonym of each other?
NO
1. Entitlement ratio calculated by registrar (before buyback) to entitle fix no of shares to be confirmly accepted from investor, seperate entitlement ratio calculated for retail & general category.
2. There is no official declaration of Acceptance ratio. Company only describes no of shares tendered by retail / general investors & %age of response against reserved for category.
From total response one can not calculate acceptance ratio.
Acceptance ratio may vary investor by investor depending on no of shares (including additional) he tendered in buyback, exception only in case where shares tendered is less than reserved i.e. 100% acceptance.
Eg. Mphasis entitlement ratio (retail) 16.94%
Total shares tendered by retailers 5217000 against reserved 1098084, response 475.10%
If calculated as per response 1098084 / 5217000 it should be 21.05%.
But actually it is not 21.05% for investors.
Holding —- Entitlement ———— Tendered ——– Accepted ———– Acpt Ratio
5 —————- 0 ———————— 5 ———————— 1 —————- 20%
10 ————- 1 ———————— 10 ————————– 1 ————— 10%
12 ————- 2 ————————– 12 ———————- 2 —————– 16.66%
20 ————- 3 ————————- 20 ———————- 3 —————— 15%
20 ————- 3 ————————- 3 ———————- 3 —————— 100%
very nicely explain bro. thank you for giving your valuable time & putting efforts in explaining query. thank you.
what is expected acceptance ratio for heg buy back for retailers? any related ans to query is appriciated by word of thank you.
10-15%.
What is Entitlement Ratio Expected for Heg……………….
Around 10-15%
Buyback tender opening date approx in 1st week of Mar.
Pl read today’s report on HEG in money control where it is clearly mentioned that fair market price would be around 3900rs per share which is 90% above from current market price.
What’s fair market price? Will the buyback value be changed from 5500/share to this fair market number?
Never. It is already fixed at both exchanges.
Could we expect some 15% to 20 % rally in HEG when buy back tender date will be announced? I had 30 nos share on record date and after that I have added again 10 stocks and now total holding is 40 nos as on date. Now my question is how much max number of share should I tender ? 30 nos or 40 nos??
Max 30 shares
@Anindya Das – What is your thought behind this statement – “Could we expect some 15% to 20 % rally in HEG when buy back tender date will be announced?”
I’m new in equity investment, so don’t know – it generally happens with good companies, some % of rally on declaration of buy back?
When the mail for buy back is expected from HEG / registrar? I have not yet got any official intimation.
Please inform the process of applying to buy back offer of HEG.
Please wait for the letter of Offer to come. In the letter of offer following information would be provided to shareholders
1. Entitlement Ratio based on the Record date.
2. Opening and closing date of Buyback.
3. Final settlement date of the buyback.
So please wait for the same to come. We will update here once it will come. The company also send the same to email to eligible shareholders.
Thanks MW
What is Entitlement Ratio Expected for Heg. Do anybody have math…………..
Techno electric ka buyback date kab aayegi?
HEG posted terrific results. But it is difficult to understand why the share didn’t do well today.
Are institutional investors playing a spoil sport, taking away retail investors hard earned money and creating volatility?!
Anybody received mail on buyback from registrar?
Can we calculate AR at this stage if yes what would it be ?
May I know branch address in Bangalore of MAS who is the registrar for HEG Limited
SMALL SHAREHOLDER IS CATEGORISED ON THE BASIS OF RECORD DATE CLOSING PRICE & NOT THE BUYBACK PRICE
BUYBACK REGULATION
———————————–
2 (i) (n) ‘small shareholder’ means a shareholder of a company, who holds shares or other specified securities whose market value, on the basis of closing price of shares or other specified securities, on the recognised stock exchange in which highest trading volume in respect of such securities, as on record date is not more than two lakh rupee;
Closing price on record date – 2375.10 (NSE, high volume)
200000 / 2375.10 = 84.21
Those who holds max 84 shares, eligible as small shareholder (retail)
Ex date of heg is 7/2 and record date is 9/2. I bought it on 7/2 could I eligible for buyback or not.?
No
When will I get mail from HEG regarding buyback?
HEG Ltd – Q3 FY19 (Cons.)
Total Income at 1864.99 Cr
842.71 Cr (121.96%) YoY | 1793.80 Cr (2.77%) QoQ
YTD 5246.17 Crs vs.1465.95 (256.16%)
Net Profit of 866.83 Cr
342.11 Cr (153.18%) YoY | 888.90 Cr (2.46%) QoQ
YTD 2526.02 Crs Vs. 447.33 (465.33%)
EPS (in Rs 216.93
85.62 YoY | 222.45 QoQ
YTD EPS: 632.15 Vs. 111.95
View: Strong result. YoY revenue and profit increased. Company is engaged in manufacturing of graphite electrodes, which are used by manufacturers of steel. Graphite electrode demand in international market is currently highly volatile due to this the share price is also volatile. Company is currently trading at annualized PE of around 4 which is very fair as per Industry benchmark. Company ROE and ROCE is around 80% and 90% respectively. Shri Ravi Jhunjhunwala has been re-appointed as Managing Director of the Company for period of five years w.e.f. 13th February, 2019. Shareholders through their Special Resolution by way of Postal Ballot approved the Buy Back of Equity Shares of the Company on 27th January, 2019 aggregating to Rs. 750 Crores, at a price of Rs. 5500/- Per Equity Share. Share high price 4900 and now 2100 almost 55% corrected and out of which 45% corrected in last 1-2 month. Current price is good to hold as far as Graphite electrode demand is concern.
I hold 25 shares as of record date 9th feb 2019 , Am i eligible for the buyback? If yes then will i receive the further communication mail from HEG / NSE?
I hold 50 shares of HEG as on 9th feb2019. I did not got any mail from NSE/ HEG for buy back till 10th Feb . What can be the reason / what should I do now??
Dont worry, It will take time, may be 10-15 days or even a month after record date.
Once buyback dates announced you will receive mail from registrar containing details about your entitled shares, letter of offer & tender form.
Only 36 share of heg will go for buy back as a retail investor so sold 14 extra holding
hi, the closing price for heg on 8th feb 2019 was 2,374 rs and accordingly the limit for retail investor is stock worth 2,00,000 Rs and hence, a person can hold 2,00,000/2374= 84.25 and so if a person holds less than 84 shares then is he/she eligible for the buyback?
Closing price – 2375.10
Max shares holding for small shareholders = 84
As defined under Regulation 2(i)(n) of the Buyback Regulations, a “Small Shareholder” is a Shareholder who holds Equity Shares whose market value, on the basisof closing price on Stock Exchangesas on Record Date, is not more than ₹2,00,000/-(Rupees Two Lakh only). As on the Record Date, the closing price on [•], having the highest trading volume was ₹[•]per Equity Share, accordingly all Shareholders holding not more than [•]Equity Shares as on the Record Date are classified as‘Small Shareholders’ for the purpose of the Buyback Offer.
The closing price as on 09.02.2019 would be the highest Volume Price of the day.
I have share of heg more than 100 on dt 09.02.2019
So can I eligale for bye back
If not then how much quantity can I kept
Pl inform urgently
I am retail invester
I had hold more than 100 share of heg on dr 09.02.2019 in my dp account
Is i am eligable for Byeback
Pl do needful
You eligible for buyback, but treated in General category, as your holding more than 2 lacs on record date
Sir, general catagary means?
Buyback divided into two categories
1. Small shareholders (Retail – holding upto 2 lacs)
2. General (holding above 2 lacs)
15% of total buyback shares reserved for small shareholders.
Generally entitlement & acceptance ratio of small shareholders is more than general category.
ex. entitlement ratio
————————————- Retail —————— General
BOSCH ————————- 41.34% —————— 2.90%
Dhanuka Agritech ———– 10.45% —————– 2.72%
Mphasis ———————— 16.95% —————– 3.33%
BHEL —————————- 18.39% —————– 4.58%
Thanks a lot
Sold Or tr the extra share so you will come under retail investors
Wrong only 36 shares are eligible under retail invester 5500 rate multiply 36 =198000
No shre buy back price is 5500 so 36 shares are eligible as aretailer
Technical if I sell shares on ex date I must be eligible for buyback right?
Yes.
But in case of HEG , I sold shares on 7th feb(ex date). Received msg from CDSL about share debit on 8th feb. Is this normal? Will I be eligible for buyback in this case?
No, i don’t think so. Ex-date was 6th since 9th is a holiday. Your settlement will be done on 11th.
No if you have no holding then which share you will give for buyback
Pl update record date as 09.02.2018
As per devi notice
Devi notice
My account is with zerodha. I am checking daily for the listing of HEG under buyback option. What is the DATE on which it will appear for tendering my shares for buyback
Do not check daily. We will intimate it on InvestorZone once it is finalized. Buyback remains opens for 12 days so do not worry.
Everyone can Participate in Buyback who has Purchase till 6th Feb and value under 2,00,000 as retail investor.You will received email from NSE/HEG to participate in Buyback.After that Contact your Brokerage Firm like Zerodha , IIFL , SMC , 5paisa etc… to add you in buyback process.
I am holding 25 shares at 3650 can I take participate in buyback
Yes. Why not.
i have 80 share of heg in my demat a/c to-day how much shares are eligible to bye back?
please answer
How to buyback prosess
Public retail Shareholding <2lacs category is 12.34% as on 31.12.2018 as reported by company in return furnished to Authorities. Looking to this what could be the ratio of acceptance for retail shareholders.
Should one participate as retail or general investor? As per my understanding, acceptance ratio far retail investor is quite higher than general.
For instance: 30% of 2lac is quite higher than 3% of 3lac.
Should a general investor reduce/sell his some quantity to become a retail investor. What u guys think?
Apply as a Retail. Generally, the general category have less AR.
i have value of my shares equivalent to 1.85L today,if shares increase tmrw and day after,will i be in retail or general category ? because today i last date for shares to be in demat.Please clarify.
for buyback category Retail or General, which price is considered Rs.5500(Buy back price) or market price as on Record date ?
Highest Volume Market Price on the Record date.
i have value of my shares equivalent to 1.99L today,if shares increase tmrw and day after,will i be in retail or general category ? because today i last date for shares to be in demat.Please clarify.
valuation calculated on closing price on record date i.e. Friday 08-02-2019 (as market closed on 09-02), if your valuation on Friday below 2 lacs, then retail otherwise general category.
so today if i remove shares more than 2L will i ge eligible fo retail category ?
I hope, today is not the last date to have shares in the demat account.
Mr.Wizard, please clarify.
Since, some of my shares were lying in the SK margin, which needs to be moved to the DP account and is happening by tmrw. So, Will those shares be eligible for buyback purpose?? Pls clarify. Thanks
As mentioned above…..By end of tomorrow I.e. 7th Feb, those shares will be in my dmat account. Will that shares are eligible for buyback?? Please clarify. Thanks
today is last date for buying shares for buyback.
Who bought shares today (will be credited on 08-02-2019 evening in demat) will be eligible for buyback alongwith who already holds shares in demat.
i have value of my shares equivalent to 1.85L today,if shares increase tmrw and day after,will i be in retail or general category ? because today i last date for shares to be in demat.Please clarify.
It will take tomorrow closing price.
If I have 20 shares,avg is 3798 then how much shares will I be entitled to buyback?
It will depend total no.of shares holding by small shareholders (holding upto 2 lacs) on record date (09-02-2019), will be declared in letter of offer. Also u will get mail from registrar regarding your entitled shares.
Somewhere in communication block a link is given for knowing the record date of 9th February 2019 for this buy back offer but the date has not been indicated in the respective column against the offer. Why is it so. Please clarify if the date/news is not confirmed.
The date is confirmed and those who will buy today will be eligible for buyback. Tomorrow selling might happen for the investors who participated only for buyback purpose. They will buyback again the required quantity after the announcement of Entitlement ratio.
Will this be informed prior ?
Market Wizard if I have just 1 share of HEG will my share be accepted in buyback? Or it will be accepted only if acceptance ratio is 100%(which obviated is impossible).. is there any minimum number Of shares holding criteria for a buyback…
Today 5th Feb is ex-date or tomorrow 6th feb is ex-date to be eligible in buyback?
tomorrow.
With OP Ajmera coming in as new CFO, the situation could improve for HEG share value.
kya sirf buy back ke liye buy kar sakte he acceptation ratio kitna lag raha he approx
Retail invertor 2 lakh is calculated on market value on record date or Buyback value of 5500?
Closing price on record date
Is there any hope of good Q3 results?
What could be the expected acceptance ratio of Retail investor of 2 lakhs?
Should we participate
Is there a chance of this going down further
As previously said, Dont play ONLY for buyback, as entitlement & acceptance ratio may not be favourable.
Stock has run more than 30 times within 2 yrs & lost more than 60% in last 4 months
Year ———- High ———— Low
2016 ———- 203.00 ——— 116.10
2017 ———- 2336.35 ——- 147.05
2018 ———- 4955.00 —– 2211.55
2019 ———- 3742.30 —– 1971.00
With OP Ajmera coming in as new CFO, the situation could improve for HEG share value.
If i buy stocks today, will i be eligible for buyback?
Yes
I bought shares in end of dec’18 after announcement of buyback, will I eligible for buyback
Yes.
So when and how can I apply
Buyback dates will be announced by the company (still not declared), buyback may take 1-2 months after record date.
You will receive mail from registrar containing letter of offer, tender form & your entitled no. of shares details for buyback.
Entitled shares means no. of shares that confirmly accepted from you as per entitlement ratio.
You can tender shares through buyback window directly (if provided) or through your broker by submitting Tender Form.
yes
Acceptance ratio Calculation:
From money control Public share holders: 58451 & shares : 15569163,
Total bubback shares : 5098325
Total Public Shares : 15569163
<2L Share (Approx. Bell curve) : 342521
Acceptance under retail for 2L Shares + non accepted shares in retail category of <2L : 15517784
Acceptance under Non-retail: : 33%
Accepted shares under non-retail for <2L : 94690
Total Acceptance for retail investors under 2L Rs Shares : 43%
Total bubback shares : 5098325
Total Public Shares : 15569163
Under 2L Share (Approx. Bell curve) : 342521
Acceptance Under retail for Under 2L (15%) : 51378
Balance shares after retails reserved Buyback : 5046946
More than 2L Shares + non accepted shares in retail category of Under 2L : 15517784
Acceptance Under Non-retail: : 33%
Accepted shares Under non-retail for Under 2L : 94690
Total Acceptance for Under 2L : 43%
Total buyback shares 1363636 (Corrected)
Total Public Shares 15569163
Under 2L Share (Approx. Bell curve) 342522
Acceptance Under retail for Under 2L (15%) 51378
Balance shares after retails reserved Buyback 1312258
More than 2L Shares + non accepted shares in retail category of Under 2L 15517785
Acceptance Under Non-retail: 8%
Accepted shares Under non-retail for Under 2L 24620
Acceptance ratio for Under 2L > 22%
Acceptance ratio Calculation:
From money control Public share holders: 58451 & shares : 15569163,
Total buyback shares : 5098325
Total Public Shares : 15569163
<2L Share (Approx. Bell curve) : 342521
Acceptance under retail for 2L Shares + non accepted shares in retail category of <2L : 15517784
Acceptance under Non-retail: : 33%
Accepted shares under non-retail for <2L : 94690
Total Acceptance for retail investors under 2L Rs Shares : 43%
Every one is saying that 09 Feb 2019 is record date for BuyBack. It’s that official or not? If yes, why it is not updated in buyback procedure.
Wizard ji, what is your opinion? You are also mentioned the same date and also seen another comment from you wait for record date.
Yes, Its Official, Record date is Saturday 9th Feb 2019
http://hegltd.com/wp-content/uploads/2019/01/RECORD-DATE-OF-BUY-BACK.pdf
Thank you PM
Refer below link for official announcement from HEG on record date “9-Feb-2019”. Anyone, any updates on acceptance by SEBI?
https://www.moneycontrol.com/stocks/reports/heg-intimationrecord-date-forpurposebuybackequity-sharesthe-company-13843341.html
Thank you Dinesh
Is there any chance to reject HEG buyback by sebi
i don’t think so.
If I have only single 1 share in Demat then if I apply for buyback will it be considered becasue if 30% acceptance ratio then 0.3 share never accepted and have to accept minimum 1 share
Is it true so I apply it??
It is rare that acceptance ratio will be 100%, it is advisable that hold minimum 5 share while apply for buyback. If acceptance ratio will be 20% at least 1 share will be accept in buy.
Where it is mentioned that minimum 1 share have to be accepted??
At least, if it is 0.7 share, then, it may be considered as 1 share, if it is rounded off.
In your example, you have calculated 36 shares for buyback i.e. 200000 / 5500 = 36. So to qualify in retail category my number of shares have to be less than 36 only? or if on record date the closing price of the stock is Rs. 4000, then i will be eligible to tender 50 shares also in retail category i.e. 200000 / 4000 = 50 ?
Yes. You would be eligible if the price is 4000. The Calculation of 36 shares is the maximum share for buyback purpose to be on safe side.
No I bought for rs.2300 will I eligible
Any calculations for what can we expect for entitlement and acceptance ratios?
Hello
How much shares will consider for buy back am holding 50 shares. If sebi rejects the approval is buy back will be cancelled
Hai
Today I bought 50 Heg shares.am I eligible for buy back
Yes.
I have close to 100 shares, so I want to sell some to be considered in retail category for buyback.
My question is can I sell on 6th feb for that, Since record date is 9th Feb (Saturday), so ex-date should be 7th feb, right?
Can someone clarify please.
Technically there should not be an issue if you sell on 06.02.2019 but to be on safer side sell on 05.02.2019. Actually, Shares are reflected in T+2 days and Saturday is a holiday.
If I have 25 shares then how much shares will I be entitled to buyback?
Wait for Record date to come.
Since 9th is Saturday, that is why Ex-date for some one who wants to participate in buyback is 6th. T+2 = 8th shares will be in his account and he will be entitled. Similarly for me, If I sell on 6th, I won’t have those shares on 9th.
I have 60 heg shares, I will be considered as retail or standard client? So how many can I offer for buyback.
Its depend on record date closing price, if it is below 3333.30 on record date closing, treated as retail otherwise as general (for 60 shares)
If I have 25 shares then how much shares will I be entitled to buyback?
Its mean on 6th Feb what ever the price is for exp 3200 so we should have (200000/3200 = 62.5) mean if we have 62 shares we are entil as retail right ???
Yes.
I mean retailer or general category..
I have HEG shares more than 2 lakh.. how to participate in buyback ? Am I not eligible for buyback? Or eleigible for only 2 lakh.. ? I have 200 shares of HEG. Is their any HNI category? If yes, what s the difference with retail category?. please suggest…
Those who holds shares on record date eligible for buyback.
Who holds shares below 2 lacs as per closing share price on record date considered as retail / small share holder others as general category.
Generally there is huge difference of entitlement/acceptance ratio between Retail & General category.
ex. Mphasis entitlement ratio for retail is 16.94% while for general is 3.32%
Dhanuka Agritech entitlement ratio for retail is 10.45% while for general is 2.71%
HEG Buyback Receives Shareholder Approval. What Next?
After plunging 20% on Monday, HEG Ltd was again locked in a 10% lower circuit yesterday.
After the company’s latest announcement, the stock price has rebounded 9%. From the prevailing stock price level of Rs 2,140, the buyback price of Rs 5,500 offers a premium of 157%.
But before you decide on taking any action, let me take you through the latest developments…
After the market hours yesterday, HEG Ltd published the results of the postal ballot for the shareholder approval of the buyback.
99.89% of the votes were in favour of the buyback. As such, the buyback has now received the prerequisite shareholder approval.
As per the buyback regulations, once the voting process is over and the buyback proposal is approved by the shareholders, the company undertaking the buyback through the tender offer route is required by regulation to make a public announcement within two working days from the date of declaration of results of the postal ballot.
This means that HEG should make a public announcement of the buyback latest by 31 January 2019.
A company making a buyback offer is required to announce the record date in the public announcement. As you are aware, the purpose of the record date is to determine the entitlement and the names of the shareholders who are eligible to participate in the proposed buyback offer. Thereafter, the company shall file a draft letter of offer within five working days of the public announcement.
As per buyback regulations, the company shall not withdraw the offer to buyback after the draft letter of offer is filed with SEBI or public announcement of the offer to buyback is made.
So, once the public announcement is made, we can be certain that the company will not withdraw the buyback offer.
But even after this stage, the buyback needs the approval of the capital market regulator. As you may know, the L&T buyback was recently rejected by SEBI on the ground that the company’s post-buyback consolidated debt to equity ratio would be greater than 2 times. (Read: Does the L&T Buyback Fiasco Affect Other Buyback Trades?)
So, some of you may have this question: Could the HEG buyback be rejected by SEBI, just like the L&T fiasco?
It’s certainly a very valid question.
So, let’s check if the company fulfills some of the key conditions and requirements for buyback of shares.
As per buyback regulations, the funds deployed for the buyback cannot exceed 25% of the aggregate of the fully paid-up share capital and free reserves of the company.
The aggregate paid-up share capital and free reserves as per the latest audited standalone balance sheet of the company as on 30 September 2018 is Rs 3,175.90 crores. As per the 25% limit, the funds deployed for the HEG buyback cannot exceed Rs 793.97 crores.
The maximum amount proposed to be utilized for the buyback, does not exceed Rs 750 crores and is therefore within the limit of 25% of the company’s fully paid-up share capital and free reserves as per the latest audited financial statements of the company as on 30 September 2018 (the latest audited financial statement available as on the date of board meeting recommending the proposal for the buyback).
The other important condition is that the ratio of the aggregate of secured and unsecured debts owed by the company after buyback shall not be more than twice the paid-up capital and free reserves. In other words, the post-buyback debt to equity ratio should not exceed 2 times.
This is the condition that L&T failed as SEBI considered the consolidated numbers and not the standalone ones.
As per HEG’s consolidated balance sheet as on 31 March 2018, the company had zero long-term borrowings, Rs 297.45 crores worth of short-term borrowings, against a networth of Rs 1,907.5 crores. In other words, the consolidated debt to equity ratio as on 31 March 2018 was 0.16 times.
In its September 2018 quarter conference call, the management has said that the company had become debt-free with no long-term or short-term debt.
So, given this, it seems quite unlikely that the company’s post-buyback debt to equity ratio would cross 2 times.
What to Do?
Despite all the adverse conditions that have currently engulfed HEG – the sectoral headwinds for graphite electrode manufacturers as well as the untimely death of one of its key management personnel, the buyback seems to be on track so far.
Nonetheless, it is important to remember that the plunging stock price is a big risk to the buyback trade as it would make the exit difficult.
One needs to tread with caution at this juncture.
If you have already bought some shares of HEG, I would suggest not to rush to buy more shares to average your cost.
If you were planning to buy the shares, but haven’t bought yet, I would like to remind you this is a high-risk trade and may not be suitable for all investors given the extreme volatility in the stock price and the adverse sectoral conditions.
Even if you have the appetite for high-risk trades, I would suggest a very small allocation so that if the trade unfolds against our expectations, the hit is not too big.
Also, if you plan to invest a small quantity, do not put all the money in one go. It is better to take a staggered approach.
Superb explanation. Thank you sir.
Very well written
Beautifully explained 👍👍
I have had 100 shares of which I sold through ICICI Securities platform 18 shares TODAY , the 07th February, Thursday.
Shall I be eligible to get into the RETAIL Category?
Please tell me How much maximum time a company can take to credit money of shares bought back in buyback process?
Does it makes sense to buy 50 shares now?
How many shares are considered as small scale investor.2lakhs divided by 5500.or 2 lakhs divided by the market price
2 LAKH divided by Market Price on Record date i.e 09.02.2019
Thanks MW,
If I have 25 shares then how much shares will I be entitled to buyback?
HEG UC with more than 3 lakh buyers.
If I have 25 shares then how much shares will I be entitled to buyback?
HEG Limited
Buy-Back
Record Date : 9th Feb, 2019
CMP = Rs. 2132.25 per share
MARKET CAP = Rs. 8532.88 crore
BUY – BACK Price = Rs.5500 per share
Buy Back of Shares = 13,63,636 Equity Shares (Thirteen Lakh Sixty Three Thousand Six Hundred Thirty Six) of the Company, being 3.41% of the total paid up equity share capital of the Company
Route : Tender offer
Total Buyback size : Rs 750 Crore
Sir, will you please inform me that what percentage of total holding of shares company will buyback?
Record date announced as 9.02.2019
Mr. Wizard, Since the record date is announced; Is there any chances of change in Buyback price of Rs.5500/- per share?
no
Should we participate now
Or stay away
And is it a strict yes that buyback will happen
Sir,
If I have 45 shares in one DMAT account & 21 in another DMAT account ( both owned by single owner) – then can I participate in buyback procedure? Which share price they consider to account 2.00 lac per person- purchase price or market price?
Yes u can participate, no. of shares clubbed by PAN No. & then categoried into General & Retail.
For calculation of Retail category closing price on Record date will be taken
Value = total no. of shares held (all demat) on record date * Closing price on Record date
What is last date for eligibility in HEG buyback??
Not announced yet
Sir, I hold 150 shares at 3758/-. I did receive letter for eVoting but I didn’t eVote through NSDL link provided. Can I still offer my shares in this buyback? Or only those who took part eVoting are eligible?
Yes you can participate in buyback. No matter you took part in e voting or not
But you don’t participate in retail category,because your holding value is more than 200000
Thank you Shyam
Even have HEG shares more than 2 lakh.. how to participate in buyback ? Am I not eligible for buyback? Or eleigible for only 2 lakh.. ? I have 200 shares of HEG.. please suggest
If not retail category, is there a HNI category? If yes, what s the difference?
HEG Buyback Approved by Shareholders
Nacho!!!
https://www.bseindia.com/xml-data/corpfiling/AttachLive/c15c9414-5734-4abd-8cd0-965cee84170a.pdf
The price erosion makes buyback juicy. I want to buy below Rs 1500. Just one more lower circuit would be pretty good.
I have 40 heg shares with average price 3514.53 shares bought from dec onwards. . I couldn’t submit my e_voting for buy back. I can doing buy back and what shall I do? Kindly advice.
Tender your shares in buyback.
HEG is down today by almost 15% and trading at 2350/-.
Can we accumulate more at this price for buyback or just hold and watch?
Do not average the falling knife. Let it settles down.
L&T had reduced buyback from 1500 to 1475 while declaring record date. Now the way HEG has fallen that gap with current buyback price is almost 50%, there could be possibility that HEG may also reduce buyback price while declaring record date.
Please do read both the Postal ballots carefully. L&T had communicated that they will do buyback at maximum price of 1500 and board will decide the price later. Whereas HEG has said in Postal Ballot that they will do buyback at 5500.
Whether the Resolution is approved or the timing of buyback etc. are separate matters but HEG cannot revise price.
LT: Company at its
meeting held today at 9.30 a.m. and concluded at 11.10 a.m. has approved a proposal to buyback up to 6,00,00,000 Equity Shares (Six Crore only) of the Company being 4.29% of the total paid up equity share capital, at a maximum price of Rs. 1500 (Rupees One Thousand Five Hundred only) per Equity Share (hereinafter referred to as the “Buyback Price”) for an aggregate amount of Rs. 9000 crore (Rupees Nine Thousand crore only) (hereinafter referred to as the “Buyback Size”). The specific price will be determined by the Board/Committee under the authority of the shareholders in accordance with the SEBI(Buyback of Securities) Regulations, 1998 (“the Regulations”), at
a premium over the daily average of the closing prices of equity shares of the Company quoted on the National Stock Exchange of India Limited during the two weeks preceding the date of the Board/Committee meeting subject to the maximum price of Rs. 1500 per share
HEG: including any amendments or statutory modifications for the time being in force. (“SEBI Circular”), at a price of Rs. 5,500/- (Rupees Five Thousand Five Hundred only) per Equity Share payable in cash for an aggregate consideration not exceeding Rs. 750 Crores (Seven Hundred Fifty Crores only) (“Buyback Size”) excluding transaction costs viz. brokerage, applicable taxes such as securities transaction tax, GST, stamp duty, etc. The Buyback shall be within 25% of the aggregate of paid up capital and free reserves of the Company as per the latest audited financial statements of the Company as on 30th September, 2018 (the latest audited balance sheet
available as on the date of Board Meeting recommending the proposal of the Buyback).
Thanks for long clarification Mr Gaurav.
As per CNBC , there is a relief for HEG buyback. HEG management has clarified that they will finish the buyback by March.
Graphite electrode maker, HEG Ltd, on Friday said share buyback offer worth Rs 750 crore is on track and will be completed by March 2019.
Last year, the board of directors of HEG approved a proposal to buy back up to 13,63,636 shares of the company, being 3.41 percent of the total paid up capital of company for an aggregate amount not exceeding ₹ 750 crore.
In an interview to CNBC-TV18, Ravi Jhunjhunwala, chairman and managing director, said, “No policy has changed as far as China is concerned and it makes very little difference to the rest of the six-seven global players in the graphite business. Two Indian companies produce about 20-25 percent of low end electrodes, which is called the non-ultrahigh power (UHP) as China only produces and consumes non-UHP electrodes.”
Jhunjhunwala said, “HEG doesn’t sell anything to China market so there is no impact to our exports and India doesn’t import anything in the UHP sector from China. China’s environment policy remains as strict as it used to be a year ago.”
“The only thing that has changed in China in the last 18 months is that it doubled electric arc furnace production from about 50 million tonne to about 100 million tonne. China’s electrode demand has subsequently doubled from 50 to 100 million tonne. In anticipation of that, Chinese companies are building new graphite plants and expanding their existing plants. The entire metal space including aluminium, copper and steel are slowing down and the world is slowing down, which is nothing specific to us. So obviously, there is some sort of uncertainty about the future,” he added.
I am a new entrant of heg shares, shares bought from december.18 end onwards. I understand that the co. hasn’t announced record date. I couldn’t submit my e_voting for buy back. Can I park in buy back now and what shall I do? Kindly advice.
How many shares you have bought and what price.
HEG and Graphite are falling as new large capacities are coming up in China.
Dear,sir I am broker to many client participate in your buy back programma so you have confirm date accpptestion rasoi
First, we need to see how much deep the price of the share will fall. Buyback and all we will be tackled lately.
HEG Buyback likely to cancelled.
Postal ballet to be held on 28th
For what reason?
It is only assumed, not 100% sure. People in the market are assuming as there is a tremendous delay in filling Draft Letter of Offer. I personally feel the company will not cancel it. Rest will come to know shortly.
q sir pls tel me
First lesson learnt in case of buyback
Huge increase in the number of individual shareholders from 58,451 in Sept-2018 to 1,23,823 in Dec-2018. Lot many people seemed to have bought just 1 share.
Most of them would be disappointed as it is unlikely that all those holding one share would get successful buyback.
hey …can anyone tell me about heg buyback.
i own 20 shares by zerodha…donot know how to tender shares
Still, company has not issued a Letter of Offer. The same will be updated here once the LOF will be issued. So keep visiting here for latest updates.
thanx alot sir..
plz solve my issue as i am new in market and donot know basic things like
* i hv demat account with zerodha in cdsl …so hw can i participate in evoting in heg…as it is showing only nsdl….
* is it compulsory to vote in heg
* differnce between evoting and tendering shares..
Mene Suna he ki Bosch buyback me Kai logo ne 1 share demate me kharida tha.
To unka tender ho gya.
To heg aisa ho Sakta he kya.
Bosch buyback me participate karne vale please reply.
Ab isko kya ho gaya
Kya iska bhi buyback cancel ho gaya
Sorry if this is a foolish question. I am interested in buyback of all the available HEG stocks, so i should be giving assent to ‘Buyback’ resolution and dissent to ‘Investment/Loan/Securities’ correct?
About BuyBack, YES.
I don’t have much knowledge on the other one. I just opted YES for both.
What is the record date? can i buy this share now to participate in Buyback?
e-voting is in process. Record date is not announced yet.
Hi Ramesh..I haven’t received any mail from heg though I am holding 75 heg stocks..What could be the reason..And what is the subject line for the mail.. Please respond
Hello Rao,
Email is just an information. you can direct use the below link for e-voting. you must use your DPID & Customer number and for password you can use OTP ( I did the same and participated).
https://www.evoting.nsdl.com/eVotingWeb/commonhtmls/SessionExpired.jsp
Hope this will help you for your requirement.
If you broker is in CDSL you must check with evotingindia website, if it is NSDL, you must check with below link belongs to NSDL. Hope you can explore easily about your login ID and OTP fur login.
About BuyBack, YES. Other one I am not sure. I don’t have much knowledge on it If say YES or NO. I just mentioned YES for both.
I just participated/completed favoring the buyback through e-Voting system.
Hi Ramesh..I haven’t received any mail from heg though I am heg stocks..What could be the reason..And what is the subject line for the mail.. Please respond
Hi Ramesh,
Sorry if this is a foolish question. I am interested in buyback of all the available HEG stocks, so i should be giving assent to ‘Buyback’ resolution and dissent to ‘Investment/Loan/Securities’ correct?
The Company had completed the dispatch of Postal Ballot Notice dated 26th November, 2018 to all the eligible shareholders of the Company, by Friday, the 28th December, 2018.
Market wizard Ji,
At current market price of HEG there is 45-48% buyback premium. Assuming the acceptance ratio is in the range 15-20%, gain on buy back comes down to 10-11%. Now the only thing left is the unsold shares. Can we expect a decline in the price of HEG as it happened in case of m-phasis whereby investors are going to incur to net loss?
Chances of downside in the share price is less. The Graphite India and HEG both have bounced back from their support. HEG not breaking 3500 and Graphite not breaking 700 shows good buying is coming at these levels.So risk and reward ratio for buyback at CMP would be good.
Received an email about e-voting. it will start from 29th Dec 2018 9AM & ends at 27th Jan 2019 5PM.
Hi…I am holding 100 shares of HEG from long time , am I eligible for buyback …If not please suggest me ..Thanks
Yes. You would be eligible.
I hope,
you are eligible under general category (worth is around 3.6L as per today’s market price).
You will not be treated as Retail investor (2Lc limit).
Only Possible option is share value must be below 2000 on record date (no one will look forward for this price I hope).
Grey market buyers are giving 600 rs for heg buyback on 1 share.
So I think 1 share on record date eligible for buyback
Will one share surely going to be accepted?
HEG share is crashing,is it effect of not announcing record Dt?
No. As per CNBC news, China is oversupplying Graphite Electrodes. This is the reason Graphite India and HEG both are falling.
Fangda Carbon New Material, China’s biggest producers of graphite electrodes, surged 5,267.7 percent in 2017 from the year before to 3.6 billion yuan ($521 million), while average profit margins in the Chinese carbon industry last year jumped more than 3,000 percent, according to CCIA data.
China is expected to have graphite electrode capacity totaling 1.5 million tonnes by 2020, up 66.7 percent from 900,000 tonnes in 2017, said Sun. That will exceed the demand of fewer than 800,000 tonnes in 2020.
Plus the price of raw material which is needle coke is also increasing due to supply pressure.
My personal view is HEG would be a long and protracted from buyback purpose. Just like Just Dial which has taken almost 6 months for the entire process to complete. Its been one month from buyback announcement and the company has not yet even initiated Postal Ballot for shareholders approval. There would be quarterly results in between and a lot of volatility till the process completes.
if 1 share is fully eligible for acceptance then it is buying opportunity with good profit. plz check applicable rules and share.
Is it true that if any one has only one share and he tander in buy back , company have to accept that ?
Good question, needs an introspect.
Shore holder having one shares or to be more generalised, those who have ‘ZERO’ entitlement, are prioritised just below promised entitlement. Let’s say if the entitlement is 1/10, all the shareholders having 1-9 shares will have zero entitlement and they will be prioritised when they tender their shares.
vry good comy pls buy
Dont play only for buyback, as entitlement & acceptance ratio may not be favourable. (entitlement ratio may be below 10%)
Keep close watch on stock prices with stop loss on holdings.
Stock has run more than 30 times within 2 yrs.
Year ———- High ———— Low
2016 ———- 203.00 ——— 116.10
2017 ———- 2336.35 ——- 147.05
2018 ———- 4955.00 —– 2211.55
Agree with P.M but fundamentally company is poised for more growth in the future. The Steel sector is doing good in India which is positive for the stock. HEG manufacture High Power electrodes which are used in the manufacturing of stell via EAF route. The demand for electrodes in European countries is huge.
As per management, the only concern is rising prices of Raw material which is Needle Coke. Apart from graphite electrodes, needle coke is increasingly being used to make lithium-ion batteries, used in phones and electric cars, further tightening availability for the steel sector. If HEG able to transfer these rising cost to the suppliers than there would not be any pressure on OPM and NPM.
I must say we will not able to see the kind of return stock has given in the last two years going forward due to poor sentiments of the market. However, if you buy this stock as an investment then this will not disappoint you.
Yes, it may be.
Views are for those who invest for buyback purpose only.
I have only 5 shares of HEG. Will I be eligible to offer my shares for buy back?
Still record date not announced, to eligible for buyback u have to hold shares till record date.
Even shares bought two trading days before record date eligible for buyback.
No. of shares matters for entitlement ratio (no of shares confirmly accepted)
Even who holds only 1 share on record date also eligible for buyback (acceptance depends on total no of shares tendered)
https://www.financialexpress.com/industry/most-profitable-graphite-maker-heg-sees-more-gain-on-chinas-push-for-blue-skies/1402147/
What should be the price of HEG to be considered under retail category?
Monte Carlo is looking bullish on charts. Keep an eye board members
No Moment on charts, almost flat after official announcement. Planning to exit (holding 300 qty),
Any suggestions?
Sorry guys, the above post is meant for Monte Carlo. Plz forgive me.
Hi. This is my first buyback participation. I had 22 shares since last one month and i added 28 more on 28/11/18. Whether I am eligible for participation and if all my shares will be accepted by company? pls. enlighten me. thanks
So you have total 50 shares of HEG. On Record Date( Which is not announced) , if suppose the share price is 4200, then you will not be considered under Retail Category but you can tender your share in General Category.
Now next question, whether all your shares would be accepted?
This will depend upon Acceptance Ratio.
if record date is not announced can the company cancel buyback.
I think it happened in case of PC Jewellers
What if the market tanks and then they cancel the buyback.
How to ascertain which company could cancel or which will be fair
Don’t compare HEG with PC Jewelers. PC Jewelers do not have the cash to pay back interest properly to the banks and company was doing a buyback. In case of PC Jewelers , their lenders i.e. Banks have not allowed them to go for buyback at the final stage. Though ethically company never cancel buyback once Record date is announced. HEG is a cash-rich company with ultra positive business outlook plus their management is good.
thanks for the answer wizard
The shares almost tripled in 1 year. is there still any steam left in this
Should we buy or wait till the record date is announced and almost everyone is saying that there is a high chance for market rout
reasons which i could find
1) OPEC meeting : almost certain that they will agree on production cut and that will boost prices
2) Historically FII pull money out in december as it is festive month and spending increases(in western countries)
3) Election results in 2-3 key states : prospects of BJP not very good, if congress comes to power market will tank(i believe)
Vinay, the right answer to all your questions would be known in about 4 to 5 months. Till then everyone will speculate.
You should have maximum 36 shares (200000÷5500) as on record date( to be declared) for retail investor, otherwise you have to be categorise in general category.
Bro if the CMP on record date is less than 5500 which 99.9% it will be then shares held could be more.
36 is the ideal case scenario(safest route) to be considered under retail category.
Normally the calculation is No. of shares = 200000/Closed MP(Record date)
if you have shares upto or equals this no you will be considered under retail category
MONTECARLO Monte Carlo Fashions Ltd. RAJASTHAN GLOBAL SECURITIES PVT LTD BUY 1,11,837 373.73 – Tomorrow buyback announcement possible. They will cash the announcement momentum and exit…..Back door se buyback price pata ho gayi hongi…😃😃
Why HEG share are crashing despite buyback offer? Expert pl explain
Please read this first. http://alphaideas.in/2018/11/28/heg-ltd-keh-ke-lunga/
However, management of HEG Clarifies that 1200cr is large because it includes
*Dedicated Graphite Electrode Nipple line for 1st time ever
*Green Extrusion Process costs of 300cr+ for 1st time in 40 yrs
Adds
Unlikely to take debt for expansion
Promoters intend 2participate in buyback.
in the comments section it was mentioned that by mistake 1 got omitted, is that correct.
if originally it was for 200 cr then 1200 cr is exorbitant even when we consider the technological improvements and all other factors(it is indeed bad planning on their part if that is the case)
Don’t u think this smack of foul play by promoters
Do you think we should participate in buyback and acceptance ratio will be how much as per your calculations
>30 % or around or substantially less
This is my day on IZ,
Thanks @Market Wizard, I saw your comments, you reply on almost all queries in detailed level and I’m learning something your comments.
I’ve one question, In above article HEG has mentioned that, management has approved the capex cost of Rs. 1200 crore and they would need within 30 months then
Why would HEG management spend(to purchase something ) Rs. 750 in buyback.
Let us see if this would be a trap like Mphasis where every large investor wanted to sell. Or euphoric like TCS where everyone wanted to buy before record date.
The company is planning for expansion of Graphite Electrodes and related products capacity by 20,000 tonnes per annum (TPA).
Macquarie has maintained outperform call on the stock with a target at Rs 5,823 per share.
According to Research house, the announced capex of 1200 cr will increase the company’s growth visibility.
It expects only a moderation of margin in FY20, while current upcycle is continuing. The high payback to investors should drive re-rating, it added.
As per Annual Report see the snippet below:
https://d2un9pqbzgw43g.cloudfront.net/main/shareholding-of-heg.pdf
The no. of shares between 0-500 are close to 28,40,693 and no. of shareholders are 43,991.- As on 31st 2018
The No. of shares reserved for Retail Shareholders is 2,04,545.
So on that basis, the AR would be close to 7%. This is all the initial calculation. Things will change and evolve as we move.
However, I feel downside in the share is very small from current market price due to cheap valuation. The sector outlook is good. Many brokerage houses have given a target of 6000. So no harm in buying HEG for an investment purpose and meanwhile whatever shares get tendered in buyback would be an icing on the cake.
Hi, But as per share holding pattern for Sep 2018; The Individual share capital upto Rs. 2 Lacs is 44,91,393 shares, the percentage comes to 4.55%. Please let me know, if any thing needs to be considered. Thanks.
Please understand this figure gives the total no. of shareholders who are holding shares between 0 to 20000(200000/10). However, for retail category calculations we want number of shareholders who are holding shares between 0 to 36.Hope u got the point.
Yeah, Thanks.
the data that you shared is for 0-500 but only investors having shares between 0-36 or 0-50 if we take CMP
so i think the acceptance ratio would be considerably more than 7% maybe in range of 25% considering some investors will buy this for buyback purposes.
can we have data like how many investors are there having shares between 0-50 and no of shares held by them, that will provide a more clearer picture
You are 100% Correct. However, such data is not available anywhere except with the company. The Company provides this data via Letter of Offer which defines entitlement, till then the calculation of AR is somewhat not correct.
HEG BUYBACK
Sub: Outcome of Board Meeting
Dear Sir,
in continuation of our letter dated November 19, 2018 and in terms of Regulation 30 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to
inform you that the Board of Directors of the Company at its meeting held today at 12:00
Noon and concluded at 2.30 P.M. has interalia approved a proposal to buyback upto
13,63,636 Equity Shares (Thirteen Lakh Sixty Three Thousand Six Hundred Thirty-Six) of
the Company, being 3.41 % of the total paid up equity share capital of the Company, for an
aggregate amount not exceeding Rs.750 Crores (Rupees Seven Hundred Fifty Crores only)
(hereinafter referred to as the I’Buyback Size”) at Rs. 5,500/- (Rupees Five Thousand Five
Hundred only) per Equity Share (hereinafter referred to as the “Buyback Price”).