Mphasis Buyback offer 2018

Mphasis-buyback-offer-2018
Mphasis
(BSE: 526299; NSE: MPHASIS) applies next-generation technology to help enterprises transform businesses globally. Customer centricity is foundational to Mphasis and is reflected in the Mphasis’ Front2Back™ Transformation approach. Front2Back™ uses the exponential power of the cloud and cognitive to provide hyper-personalized (C = X2C2™ = 1) digital experience to clients and their end customers. Mphasis’ Service Transformation approach helps ‘shrink the core’ through the application of digital technologies across legacy environments within an enterprise, enabling businesses to stay ahead in a changing world. Mphasis’ core reference architectures and tools, speed and innovation with domain expertise and specialization are key to building strong relationships with marquee clients.

Buy Back Offer Deal:

Buyback Type: Tender offer
Buyback Record Date: Oct 25 2018
Buyback Opening Date: Dec 07 2018
Buyback Closing Date: Dec 20 2018
Buyback Offer Amount: ₹ 988.275 Cr
Date of Board Meeting approving the proposal: Aug 07 2018
Date of Public Announcement: Aug 07 2018
Buyback Offer Size: 3.79%
Buyback Number of Shares: 7,320,555
FV: 10
Buyback Price: ₹ 1350 Per Equity Share

Details of Buyback:

The Company, at its meeting held today on 07.08.2018  which , inter-alia, approved a proposal for Buy-back of equity shares (“Buy-back”) from all the existing shareholders of the Company on a proportionate basis through the “Tender Offer” method in accordance with the provisions of Securities and Exchange Board of India (Buy-Back of Securities) Regulations (the “Buy-back Regulations”) and the Companies Act, 2013 and rules made thereunder at a maximum price of Rs.1,350/- (Rupees One Thousand Three Hundred and Fifty only) per equity share, aggregating to an amount not exceeding Rs.9,882.75 Million (Rupees Nine Thousand Eight Hundred and Eighty Two Million and Seven Fifty Thousands ).

Salient financial parameters:

Year Asset(Cr) Revenue(Cr) PAT(Cr) EPS
2016 7416.84 2909.88 457.14 21.78
2017 7317.09 2945.45 625.01 29.76
2018 6985.34 3114.92 739.89 37.69

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Mphasis Buyback offer 2018 in demat or physical form as on record date [25.10.2018]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [07.12.2018 to 20.12.2018] by selling your shares through your broker on NSE or BSE. 3. Then on [Not Announced Yet], 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 148 Shares at CMP of Rs.1150[ 2,00,000/1350=148)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 170200 170200 170200 170200
(ii) No. of Shares buyback 48 74 111 148
(iii) BuyBack Profit 9600 14800 22200 29600
(iv) Profit 6% 9% 13% 17%

Recommendation:

Mphasis Buyback offer 2018 Review and Recommendation by InvestorZone team => 6/10 Live Subscription Link

    I tried to offer my shares through my broker. They are asking for the facilitator. Who is the facilitator for the buyback program ? Broker / some one else…

    Experts need advice
    On record date I had 70mphasis shares
    But after record date, I switched to new Demat account and closed my old demat account
    I have got the tender form with old demat details
    Please advice what can I do to tender these shares?
    Can I drop email to registrar?
    Thank you in advance

      Letter of Offer – Page # 50
      22. V — Eligible Sellers will have to transfer the Equity Shares from the same demat account in which they were holding the Equity Shares as on the Record Date and in case of multiple demat accounts, Eligible Sellers are required to tender the applications separately from each demat account.

      Contact to registrar for more clarity, except Saturday, Sunday and Public holidays between 10.00 a.m. to 5.00 p.m.

      Integrated Registry Management Services Private Limited
      Tel: +91 080 23460815-818
      Fax: +91 080 23460819
      Email: giri@integratedindia.in

    Dear @marketwizard or any other.
    Just wanted to check whether in buybacks, will it matter if more shares are tendered.
    Does buyback ratio increase in proportion or it is simply a case that if we tender say 100 shares on mphasis, then we get abt 17 shares plus maybe an overflow of abt ( let us assume 10 shares) , so 27 are bought back.
    In alternative, if we tender say 150 shares, then on 17% approx ratio, 25 are bought back plus the 10 shares overflow.
    I am referring here to the addl 10 bought back. Will the position change if we tender either 100 or 150.
    Hope my query is clear.tks in advance

      Yes, it matters.
      1. You can tender max shares as holding on record date.
      2. Entitlement ratio calculated seperately for additional shares tendered If 100% retailers not tendered their entitled shares.

      ex. Holding on record date = 150 (Entitlement ratio – 25 shares)
      consider additional shares entitlement ratio is 10%

      case 1. Shares tendered 100
      Shares accepted = 25 (Entitled) + 8 (10% of additional shares tendered 75) = 33 shares

      case 2. Shares tendered 150
      Shares accepted = 25 (Entitled) + 13 (10% of additional shares tendered 125) = 38 shares

      No, you can apply max 168 shares out of which 28 shares confirmly accepted, additional shares acceptance depends on total shares tendered by small shareholders

    HDFC Securities window opened, can somebody inform me what is the entitlement ratio.

      Entitlement ratio
      Small Shareholders (holding upto 205 shares on record date) —————— 10 out of 59 (16.94%)
      General category (holding more than 205 shares on record date)————– 24 out of 721 (3.32%)

    If one has not received email of Buyback offer or missed/deleted accidentally, is there a way to ask for the email again?

      Letter of Offer Page 55-56
      ————————————–
      XXII. In case of non-receipt of this Letter of Offer:
      a) In case the Equity Shares are in dematerialised form: An Eligible Seller may participate in the Offer by downloading the Tender Form from the website of the Company i.e., http://www.mphasis.com, or by providing their application in writing on plain paper, signed by all Eligible Sellers, stating its name and address, number of Equity Shares held as on the Record Date, Client ID number, DP Name/ ID, beneficiary account number and number of Equity Shares tendered for the Buyback.

    Is there any link available (similar like IPO allotment status) to check No. of shares eligibility for Retail Investor for those who don’t receive tender form?

    Wizard Sir, Do you have any idea? any link available like that?

    Hi,
    I have 66 Shares but I have not received any mail as of now checked all the folders, can anybody suggest whom to contact for this.

    Hi Friends,
    I have not received any letter(also checked in my spam folder). I had 90 shares as on Oct 25 2018, bought all the shares sometime around Sep 30 – Oct 15 2018.
    Any idea, whom should I contact?

      Dont worry, those who bought shares on or before 23rd Oct (holding on 25th Oct) are eligible for buyback.
      If your broker provides buyback window in your trading platform, no necessity for tender form, you can directly tender shares in buyback window.
      You can ask ur broker regarding buyback window, if buyback window not provided in your trading platform you have to download tender form & submit to ur broker.

    Hi Friends,
    I got mail in spam folder.I dont know how to fill acceptance letter.someone help me what columns to fill and how to send back.last date to send.pls

    Hi,
    I have 150 shares and eligible for 25 shares for Buyback… What AR is expected
    My cost is 1180/share..
    If price come to 1100 then can I sell 50% holdings
    Pls advise

    Offer Letter was mailed to all Eligible Shareholders on Nov 30, 2018 with below subject
    “Mphasis Limited – Buyback of upto 7,320,555 Equity Shares of the Company at a price of Rs.1350/- (Rupees One Thousand Three Hundred Fifty Only) per Equity Share (“Buyback Price”), payable in cash”
    -Check Spam Mail.
    From Mail ID : clientservice@integratedindia.in

    However AR comes out to be =15% as of now.

    I have not received tender offer letter yet and buyback will be starting within a week.

    Does anyone know to whom we should contact if we have not received tender letter?

    Any View?

        Even I didn’t received email regarding entitlement till now. When (date/time) did you receive email Abhishek ji ??

          Indeed it is in spam folder. They have sent on 30th Nov 2018. So, please check spam folder if you have not received email.

            Rakesh ji, what is the ratio, can you provide full details, anxiety is because we have invested heavy amount worried about losing money.

    My guess is that acceptance for retail could be 25%.
    Reasons-
    1. Not all tender their shares
    2. Last time, the ratio announced was abt 74% and 100% was finally accepted.
    3. with price recovery to 1000 rupees (and i expect it to be abt 1100 closer to dates of buyback) and a solid y on y growth of this co in future, some very long term investors may not even bother on buyback.
    4. Some ppl who may have been eligible on record date, may exit their entire holding if recovery is around 1100, thus improving chances of buyback for rest ( since in short term, price beyond 1100-1150 looks difficult and ppl will calculate that the price may again go back to 900-950 post buyback closure

      What will be final number will be known in 1 month time. But my feeling is that Buyback acceptance ratio will not be too different from entitlement ratio.

      Reasons:
      Looking at the success of TCS and HCLTech buyback, a lot of new investor entered in buyback of Mphasis expecting similar response when started from 1250.
      With every drop in price, it started becoming more and more attractive, resulting in very high number of investors.
      Between March and Sept 2018, more than 20 Lakhs new shares were bought in retail category. In prices fell more in Oct, so till 25th Oct, you can guess another 20 Lakhs shares would have been bought by retailer..

      So, your guess of 25% acceptance could be reality.

      Those who have entered in this stock near 1000 level, if they start exiting, they can save some losses because after buyback closure this stock may go below 900 level (see the price of TCS and HCLTech after buyback) and also election time will add more uncertainty.

      So, unless one decides to hold this share till next buyback announcement, it would be better to start exiting with every price rise with some price than to wait for buyback price and stuck after buyback closure with lower rates resulting in heavy losses.

      My overall feeling is that Mphasis mgmt delayed all dates making it more attracting that resulted in trapping investors than helping them.

      If all small shareholders opt for buyback, only entitled shares will be accepted, no additional shares tendered will be accepted.

      Acceptance ratio calculation depends on how many shares tendered by retailers.
      Eg.
      1. If total shared tendered by eligible retailers less than or equal to reserved for buyback then acceptance ratio will be considered as 100%
      2. If all eligible retailer tender 100% entitled shares only & no additional share tendered then also acceptance ratio will be considered as 100%
      3. If all eligible retailers tender 100% holdings as on record date, then acceptance ratio will be considered as 16.9% (same as entitlement ratio)
      4. Acceptance ratio (retail) = reserved shares for retailers (1098083) / total shares tendered by retailers * 100

      *** For an individual acceptance ratio calculation will be different
      e.g. AR (Individual) = shares accepted / shares tendered * 100

    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…😃😃

    Letter of Offer of Mphasis is available below.
    https://beta.bseindia.com/xml-data/corpfiling/AttachLive/218bae14-d949-4764-9fc7-8eed6f54deb1.pdf.

    The crux of Letter of Offer

    (i) Fifteen percent of the number of Equity Shares which the Company proposes to Buyback i.e., 15% of 7,320,555 Equity Shares which works out to 1,098,084 Equity Shares.

    (ii) The number of Equity Shares entitled as per their shareholding as on Record Date i.e., (6,479,338 / 193,417,108) x 7,320,555 which works out to be 245,233 Equity Shares.

    Conclusion:

    The number of Shares Reserved for Retail Shareholder = 1,098,084 Equity Shares.

    The number of Shares held by Retail Investors on Record Date= 6,479,338

    Entitlement ratio = 16.9%.

    The ER is very poor. We are heading toward a big loss. The AR may be max. 20-25%.

    If anyone receives Letter of Offer by email please share it here so that we can get the information instantly for our board members.

      Dear Wizard,
      As on record date if anyone holding less than 2 Lac worth of shares (say 1000 shares) and after the record date (assuming, with an entitlement of 300 shares) and before the open date, If they sold some of the shares (say 500 shares); Are they eligible to apply for buyback for the balance shares (500 shares)? If yes, assuming 40% is the acceptance ratio…….How many shares will be considered for buyback? Is this 200 shares (500*40%)
      or 380 shares (entitled 300 shares + balance of 200*40%)?

      Thanks.

        Pavan Jii ,

        Query 1: If you are holding 1000 shares on the Record date and if you sell 500 shares before opening. Are you eligible for a buyback(500 Shares).

        Answer1: Yes, you would be eligible for the remaining shares.

        Query 2: Assuming 40% the acceptance ratio…….How many shares will be considered for buyback?

        Answer 2: if you tender 500 shares then 40%*500 (200) would be accepted and rest will be given back. Entitlement Ratio does not have any significance. It just the ratio which indicates the minimum number of shares which will be buyback by the company.

        Entitlement Ratio = (No. of Shares reserved for Retails holders in buyback / No. of eligible shares of retail on Record Date ).

        Generally, AR is always more than Entitlement Ratio.

        What anyone sold after record date doesnt co-relate with buyback.
        Anyone who holds no.of shares as on record date are eligible to apply for buyback.

        Eg. Holding on record date – 180 shares
        Sold 150 shares after record date
        Entitlement ratio – 30% (180 * 30% = 54)

        1. can buy short shares & tender for buyback
        2. can tender max 180 shares (even entitled shares 54)
        3. 54 shares confirmly accepted & additional shares acceptance depending on total shares tendered by investors.

          Thanks Mr. PM.
          However, As per Mr. Wizard, the third point of yours (54 shares confirmly accepted) may not holds true; assuming as per your example, i.e. Holding 180 shares on record date, sold 150 shares after record date with an entitlement ratio of 30%.
          In this scenario, we hold balance of 30 shares and assuming buying of 60 shares (only) and tendered 90 shares for buyback.
          If the acceptance ratio is 40%; 36 shares of mine only considered for buyback and not a minimum number of 54 shares + 14 ((90-54)*40%).
          Pls let me know, if any other view. Thanks.

            1. Entitled shares means the shares confirmly accepted.
            2. Entitlement ratio calculated before buyback & Acceptance ratio is calculated after complition of buyback.
            3. Initially Acceptance ratio & Entitlement ratio to be considered as same (before buyback begins, considering 100% investors will participate in buyback)
            4. Acceptance ratio changes if 100% investors not tendered for buyback.

            Eg.
            Total buyback reserved for retailers – 10,00,000
            Total no. of retail investors — 72,700

            If only 67,000 retail investors tendered for buyback, then additional entitlement ratio calculated for investors who tendered more than entitled shares from the entitled shares of 5,700 investors who not tendered their shares.

              As per above example; Please let me know, how many shares considered for buyback, when we apply for 90 shares (not 180 shares).
              Is this 36 or 68?

                If you apply 90 shares (considering entitled shares 54)
                54 shares confirmly accepted
                from 36 remaining it will depend on additional shares entitlement ratio. consider if additional shares entitlement ratio is 25% then
                9 additional shares will be accepted
                means total 54+9 = 63 shares will be accepted

            54 confirm will be buybacked. It is correct. I was wrong in calculations. Thanks

      It is out on the website. Entitlement ratio of 16.9% for retail. Too low to be honest. Final acceptance ratio can move up to 25-30% in the best case scenario. It has trapped people badly. This became an overcrowded trade and I doubt anyone will make positive return from this buyback.

    If someone has shares worth more than 2lac rs and apply less share in buyback … will that person be considered as retail investor

      investors category retail/general decided as per holding on record date
      If someones holding on record date above 2 lacs, he is considered in general category only.

      Wait for the letter of offer to come by tomorrow to get the feel of entitlement ratio.

    *Mphasis Buyback Update*

    Date of Opening of the Buy-back offer –>Friday, December 07, 2018

    Date of Closing of the Buy-back offer –> Thursday, December 20, 2018

    Last date for payment of consideration –> Tuesday, January 1, 2019

    Last date for extinguishment of equity shares bought back –> Tuesday, January 8, 2019

      Sir, thanks for sharing! Interesting read indeed. Falling prices was making me worried that if AR drops considerably, we might be faced with a loss. But after reading the article, it makes us reassuring that with more buybacks lined up potentially in future, the company would be doing well!

      As per SEBI Regulations:

      Offer procedure

      9.(i) A company making a buy-back offer shall announce a record date in the public announcement for the purpose of determining the entitlement and the names of the security holders, who are eligible to participate in the proposed buy-back offer.

      (ii)The letter of the offer along with the tender form shall be dispatched to the securities-holders who are eligible to participate in the buy-back offer sub-regulation. (i), not later than five working days from the receipt of communication of comments from the Board Explanation:

      (a) Letter of Offer may also be dispatched through electronic mode in accordance with the provisions of the Companies Act.

      (b) On receipt of a request from any shareholder to receive a copy of the letter of offer in physical form, the same shall be provided.

      (iii)The date of the opening of the offer shall be not later than five working days from the date of dispatch of the letter of offer.

      (iv)The offer for buy-back shall remain open for a period of ten working days.

      They have cash reserve of close to 1400 Cr. Let us see how much they will put up for buyback

    I have bought 178 shares @ 1070 any view on this.! From that point its completely bearish. Any announcements of buyback date.? & Can anyone tell me the estimated buyback ratio ?

    Any idea what is the estimated acceptance ratio for mphasis ? The share seems to be in a freefall post the announcement of the buy back. I bought mphasis @ average price of Rs 1200. Am i looking at a huge loss if the acceptance ratio tanks. I hold 160 shares. If anyone can share the analysis basis the above numbers will be much appreciated. Thanks.

      Chances are high that Acceptance Ratio tanks. Plus the market condition is poor so whosoever having Mphasis Shares will definitely tender shares in Buyback. However, Let us hope for better acceptance ratio.

        My calculation with data on BSE:
        With June data, entitlement ratio was 81%.
        With Sept data, entitlement ratio is 34%.
        Oct could be spoiler further.
        So, assume final Entitlement ratio could be n the range of 20 to 30% only. We can come to know in couple of weeks. Till then, please keep on waiting 🙂

      Same thing here. Bought 125 shares hoping to encash in the buyback here and L&T as well.

      Don’t think buyback is a place for short-term gains at all.

        If the condition of the market is good then every strategy works out handsomely. However, everything falls apart in the bear market.

        In Bear market buying in SIP mode, is the best solution available with the investor.

        The election in next 6 months are around the corner, the condition of Indian Economy is in bad shape due to rising Crude and Dollar and US-China Trade War Tussle are some of the biggest spoilers of Capital market in coming time.

        So to weather out from this storm SIP in quality stocks is the way to go strategy and I am doing the same thing from April 2018 onwards.

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

    HI, I have 100 Shares in my account. I had never taken part in any buy back. Anyone please explain how going to this work? What if I sell this shares now, still I can a participate in Buy back? If yes, how can I submit my shares? How much time they allow? Thank you

    I have 170 shares of mphasis as on record date of the buyback 2018?
    Will I be eligible for retail category for Buyback?
    Please clear the confusion.

    Does the buyback process begin immediately on 25th or it begins shortly aftera few days? will they announce that date? As I am not seeing anything from my broker regarding the buyback.

      Yes. The company will intimate the window of opening and closing date of Buyback.

      Fundamentally the stock is good. However, the Market condition is so bad that no buying is coming at any level. So unless some sanity comes in the market the chances of recovery is very less. We have seen how TCS fell drastically after Buyback. Moreover, no immediate trigger is available in the market to react.

    I bought 100 shares on 24th morning. As the cut off date is 25th, will i be eligible to participate?

    I have 100 shares in my Demat account, Am I eligible for buyback? or I need atleast 148 shares to participate in buyback ? Please suggest

    The Stock Price fell like a Nine-Pins after the record date.

      So, post buyback, remaining shares will have to be hold till next buyback or bonus announcement as rebound seems unlikely in near future.

    Hi, can I sell the Mphasis shares tomorrow (24th October)? and still be considered for the buyback? I have clear quantity as of today (23rd October).

    The reason is for NLC the record date is 24th October and today it fell 7% back to where it started from.

    Please advice.

      I had issue when I sold the shares a day before record date with HDFC. Not faced any issue with ICICI. So better check with your broker.

      Yes you can. You will still be eligible for tendering your shares and you can buy the shares from.open mkt and tender when the buyback period commences

      Kharid sakte ho per aap phir retail category main count nahin honge aur joh 15% ka quota fix rakha jata hai woh bhi aapko nahin milega.

    Hello sir,what might be the acceptance percentage of shares in mphasis buyback? Please advice.

      Pls do not worry. This is a standard company and will never cancel buyback on flimsy grounds. Besides, it can be challenged legally also i think if it does after fixing a record date

      To be eligible for buyback buy 2 days before the Record Date.

      23rd oct can buy from mkt so that it is in your demat acct on 25th.
      The company will take demat holding data from depositories for those holding share as on 25th evening

    But be sure of one thing. Past buyback ratio is no predictor. In navneet, the ratio out today gives just 26% buyback in retail whereas when they came with buyback in 2016, it was 100%.
    In case of mphasis, the buyback size based on no of shares to be bought back, is mich lesser than last time.
    In navneet, the no of shares both time was still the same.
    So, be careful. I have burnt my fingers in navneet and cant help in mphasis since i had already bought at abt 1200. So will stick it out.
    So fresh buying ppl, do be careful unless you consider mphasis as a good long term investment at these prices

      100% Agree with Adesh Jii View Point. Summarize it nicely. I request everyone to invest in Buyback thinking of long-term investment and in between whatever be the Acceptance Ratio will act as an icing on the cake.

      Hi Adarsh and Wizard

      How retail category is decided. It is 200000 devided by market price or buyback price at record date.

      Suppose on 25-Oct, Mphasis market price is 1125 and I am holding 160 shares. Will I be considered in retail category?

        It is calculated on the basis of Market Price on Record date.

    The earlier analysis was for 80% buyback. Assuming all the increase in pd up value (upto 2 lacs) of 40% is by retail investors, even then abt 55% buyback. And assume increase in oct, maybe abt 40% it could remain

      It looks like Buyback Acceptance predicted is already down to 20%. Net Addition is of 1746827 shares in the Retailer Category. At a rate of 1100 per share this is an addition of about 192 crores. The Total Retailer holding at entire 6230428 values at 1100 per share is a about 685 crores.
      Reserved Category is 135 crores. Thus we are looking at 135/685 which is about 19.7%

      The new addition of almost 192 crore in past 3 months can be assumed at all in retail. 20,000 people bought about 87 shares each.

      Expect stock to be below 1000 after Results or after record date.

    Is price se mphasis m Kya chances hai acceptance ratio k??? Is it good now?? Stock is in reversal now

      Chances of gains in Mphasis were much better when it was available at Rs 1000. It has already gained back. Let us see the results now.

    As per Sep-18 shareholding pattern released to the exchanges today, retail shareholding has gone up from 2.32% to 3.22% Jun-18 to Sep18. That’s a near 40% increase in retail shareholding obviously in anticipation of milking the buyback arbitrage.
    Given how Jagran Prakashan stock has been down in the dumps ever since its buyback announcement (CMP 108, Price at buyback announcement 160, Buyback price 195, Acceptance 20%), one should be very wary of investing in Mphasis from a buyback angle.
    Where can the stock settle? At CMP, stock is at 20+ on TTM earnings which is not a bargain really.

      No one can tell this for sure, one can only guess. Entitlement ratio can be known only after closure of record date.

      approx 20-30%
      not more than that

      wait for 17th and decide after 17th accordingly as advised by @marketwizard

    Please let me know if we can buy Mphasis or still wait for the price to fall? What is the latest opinion/recommendation on this buyback. Little scared looking at the market volatility and already incurred losses.

      My opinion:
      If you are looking to buy from long term perspective, price is good. But if you are looking only from Buyback perspective then better stay away as acceptance ratio would not be as much it appeared 2 weeks back.

    The way market has plummeted over last 3 weeks, any fresh entry into MPhasis (or any new ones) for Buyback has become real risk now. Initially, it used to appear that acceptance could be 60 to 100% for Mphasis, but now a whole lot of new investors would have already entered seeing big gap with buyback price. I fear whether even 10% entitlement would come now. Those have entered about 1100 are stuck for long term. Better to stay away from Buyback in current market (unless you decide to hold stocks for very long term) as it may take more than a year or Sensex may not even regain 38K level even in next 2-3 years the way things are going in India market (and elections are round the corner, that will not allow rebound). One after other sectors are collapsing.. Realty then Telecom, then Airlines, now Banks and Financial sector, all going one by one. IT is holding the market, but if Trump takes touch stance on India due to Russian deal, IT may see biggest hammer.

    My post doesn’t mean all negative only, but things are really difficult for short to medium term. This is good time for SIP as accumulation in lean phase will fetch far better returns when market rebounds back.

    Mr Wizard , Except today where the market was on a bull run the mphasis stocks have been hammered even after the announcement of record date ? Are we retail investors missing something or the acceptance ratio is going to be very adverse.

    Your views please.

    Why mphasis share price decreasing sharply .for buyback can I buy at current level.what may acceptance ratio.

      I think rumour in the market that results of Mphasis wont be good. I think lot of good opportunities are there in the market apart from buyback. Those who bought at higher level please stay invested.

    NLC Buyback | NLC board approves buyback of 9.28% shares of co worth up to Rs 1,249 cr at Rs. 88. The CMP is 72.

    HELLO
    IS NOW ON 1170… IF WE BUY TODAY AT THIS PRICE … WILL IT AFFECT THE ACCEPTANCE RATIO IN SUCH A LOW PRICE AFTER ANNOUNCING BUYBACK….CAN IT BE BOUGHT PLEASE SUGGEST AT THESE LEVELS

    *FWD AS RECEIVED*

    Nifty

    After 2008 fall of 65% from high, in last 10 years Nifty corrected double digit % fall in 5 times:

    1) Dec 11 -29%
    2) Aug 13 -18%
    3) Feb 16 -25%
    4) Dec 16 -12%
    5) Mar 18 – 11% and
    6) This is the 6th time so far 13%

    In all 5 previous falls it never violated previous fall’s low.
    March 18 low was 9952.

    Hence 9900-9950 remains the most important level to keep in sight.

    It is getting problematic now. The acceptance ratio will go down drastically in this buyback if share price wont improve in coming days. Lot of people who bought above 1200 looks struck to me unless they average it. However, averaging at this juncture could be dangerous as market may tank more if Nifty Breaks 10k levels. So it is very difficult to say anything at this juncture. We need some sanity in the market to gain from here on. FII are continously selling from last one week as they are finding US Market as safe heaven due to High bond Yields. The dollar and Oil until these two factors wont improve the situation would remain dicey.

    @saurabh

    I am investing in the market since the past 1 year
    haven’t seen anyone cancelling buyback after announcing record date, i am not sure but i think SEBI will take action if such thing(recalling buyback) happens, but as per market sentiment it is very risky as shares could still fall further and erase the gains from buyback(remember only certain percentage, this time small one as bears have gripped the market) will be eligible for tendering(rest shares will be with you only)

    Today Mphasis reach 1100. Is it good to buy for buyback? or any possibility with roll out of buyback offer?

      With record date announced, i do not think it is possible to rollback. Either retail subscribers have increased so much in this buyback that the ration of buyback might be less than expected and hence the people in the know could be selling it.
      Also, maybe since the entire IT is down, it could be just following the trend.
      ( Note than mphasis had almost doubled in last one year or so, unlike other IT stock which had just gone up abt 50% or so

    what are the possibilities of Mphasis recalling the buyback offer? retailers are already in fear.

    Currently it seems Mphasis is totally detached with IT index making new lows everyday. No buying for buyback visible. Can’t guess logic behind this move.

      I think someone is purposely beating down this stock..and may be we can see rally near to record date…its good time to enter this stock .

    One more money making idea
    Buy back opportunity in IT company Mphasis @1350 and CMP is only 1160 so a premium of 16 odd %
    Record date announced 25th Oct 2018 so it means that Buy back would be completed in next max 2 months and even if 60% acceptance ratio is assumed on conservative side even then decent returns of approx 10 % can be made in 2 months (ASSUMING MARKET RATE REMAINS SAME) so should go for it up to 2 lakhs in retail…Invest 175k and returns expected 17k with assumptions as mentioned above…

    *Buyback update*

    👉Mphasis 25 Oct is record date for buyback

    👉L&T Buyback record date will announce shortly

    This Mphasis daily provides the same info to the bourses.

    Approval of buyback

    But not annoucing the date of buyback.

    The way market is cracking and gap with buyback price is increasing, is there any chance of Mphasis and L&T buyback may get called off ?

      Yes. Mphasis is a good buy below 1200 for decent gains through buyback.

    T D POWER SYSTEMS
    Buyback upto 30cr at Rs 256/sh (80% prem)

    At 256/sh: Can buy 11.7lkh shrs
    If they buy for eg at an avg of 200/sh; they can buy 15lkh shrs
    Hence atleast 3.5% to 4.5% shares extinguished

    GOING BY ANNEXURE-A
    Promoters won’t participate

    Finally +Ve intent!! (Twitter)

      Wizardji
      What is the acceptance ratio in TD Power Systems?

      Kindly guide whether which is good price to enter into TD Power Systems?

      TD is not through tender offer and would be by open mkt purchase.
      So does not make sense in my view to invest.

    Last year, retail category got 100% acceptance. Now, I see that investors having less than Rs 2 L worth shares are only around 2%, this number is similar to what TCS has.

    Since TCS has got almost 100% acceptance, can we expect the same for MPHASIS too ?

      How do you get this data that only 2% are holding shares of 2L worth?

        From BSE website, June 2018 Sharehlding pattern:
        Individual share capital upto Rs. 2 Lacs 2.32%
        Individual share capital in excess of Rs. 2 Lacs 1.15%

            Nice talking to you and educating me for something I did not get answer anywhere. Please remove my phone number from this page.

    How many maximum shares can we buy in Mphasis to be eligible in Retail category? is it 148 shares? (148*1350=1,99,800). Plz provide clear guidance for all buyback for qualifying in retail.

      Mphasis Buyback date is quite near with poor sentiments in the market the price hardly go above 1250 level. Considering price of 1250 , you can buy 160 shares. However, if price go above 1250 then you will not be counted under retail category. So be on safe side buy, 150 shares.

    *Buyback Update*

    Mphasis current price-1193

    Buyback price-1350

    Record Date – Announce within 1 Week

    Acceptance Ratio Tentative-50%

    ☸☸☸☸☸☸☸
    L&T current price-1330

    Buyback price-1500

    Record Date – Announce after 1 week

    Acceptance Ratio Tentative-40%+

    ☸☸☸☸☸☸☸☸

    Redington Current price-98

    Buyback price-125

    Record Date – 28 September

    Acceptance Ratio Tentative-30%+

    ☸☸☸☸☸☸
    ———————————–

    ☸☸☸☸☸☸
    TCS Buyback Acceptance Ratio 100%

    ☸☸☸☸☸☸

    HCLTech Acceptance Ratio may come 85% to 100%

    ☸☸☸☸☸☸☸
    Navneet Education Acceptance Ratio may come 40%+

      Sir, can I get the this figure:
      Number of shares with Retail Investors within range of less than Rs 2 L ?

      No. You can only get the data of total numbers of shares held by shareholders.

            Then we should wait till AGM.The Current Market Price is Rs. 512. If any positive announcement comes in AGM then we will buy . In PCJ case banks their lender didn’t give permission for buyback and it was finally canceled.

    Bought mphasis today at 1184. I think it is a good entry point at current level for buyback.

    *Kiocl buyback*
    Buyback size – 1,25,88,235 shares
    Buyback price – 170/-
    Buyback size – Rs. 214 crore

    Record date expecting around 7 th October. So slowly it can be accumulated now.

    Keep an eye on Mphasis. It is nearing 1200 today. This can be a good opportunity to enter for buyback.

    👉Mphasis buyback record date may come October first or second week

    👉L&T buyback record date may come October second or third week

    👉Redington buyback records date 28 September

    It will take another one month to announce Record date. So if get chance near 1200 then accumulate it.

    As per Annual Report up to March 2018, the no. of shareholders having shares between 0-500 were 20,840 having shares 1,355,829. As more people will buy shares till record date for participation in the buyback, assuming retailers having 20 Lacs shares as on Record date, the Acceptance ratio should be around 50-60%.

    15% of 7,320,555 No. of Equity Shares =.11 Cr No. of Shares Reserved for Small Shareholders.

    Mphasis buyback –

    The promoters are also intending to tender their shares in the buyback by Mphasis In its report, *HDFC securities* highlighted that “Even assuming 60% acceptance ratio and the market price not falling below Rs 1,080 post the payout, investors can earn an absolute return of 8% (subject to short term capital gains tax) over the next 90 days (maximum average time taken from board approval to payout in recent tender offers) leading to an annualized return of ~32% p.a. Every 5% increase in acceptance ratio could improve annualized return by 4.7% p.a”.

    Mphasis in March 2017 also made a similar buyback offer during which shares tendered by the small shareholder category amounted to be less than the reserved portion for them as a result acceptance ratio turned out to be higher than the theoretical value arrived at for acceptance of shares by the company during the buyback.

    *Mphasis Limited*
    *Buy – back*
    *View : Positive*
    UPSIDE % = 17 % ( difference between Buy-Back price and CMP – Rs.1152.50)
    Promoter’s Holding = 52.37%
    Public holding upto Rs.2Lacs = 2.32% = 4483601equity shares
    CMP = Rs.1152.00/- per share
    MARKET CAP = Rs. 22281.49 crore
    *BUY – BACK Price = Rs1350 per share*
    Buy Back of Shares = 7320555 equity shares (representing 3.79% of the total number of equity shares in the paid-up share capital of the Company)
    *Route : Tender offer*
    Retail Acceptance ratio = 25% ( higher probability of acceptance may go upto 40-50%)
    Overall Acceptance ratio= 4%
    Total Buyback size : Rs 988 Crores
    Promoter’s would participate.

      Should we buy Emphasis at CMP for buyback purpose or wait for further downside.

      What is the safe level for this purpose?

      What does negative reaction after announcement signify?

        I would say we should start accumulating Mphasis at current levels and add on dips. We have seen how investors were waiting for TCS to fall below 1800 to make an entry but unfortunately, it didn’t break that level and inversely keep on rising from thereon. So averaging is a good option in Mphasis. The company has posted excellent Q1 numbers that will also support price. Please remember to be eligible for buyback under the retail category you should not have shares worth more than 2 lacs as on Record Date( which is to be announced later) else your bid will be rejected while tendering.

          Correction Mr. Wizard,
          Your bid would not be rejected, but considered in General!!!

              There are 2 categories:
              1. Retail – reservation 15%
              2. General – It includes all except retail, including promoter

                Okay. My meaning of rejection was that you will not be eligible for 15% reservation.

    Mphasis has made a stunning performance in Q1

    i) Net profit attributable to shareholders growing 38 percent to Rs 258.3 crore in the said quarter from Rs 187.19 crore in the year-ago period.

    ii) Revenue from operations increased 18.5 percent to Rs 1,820.22 crore in the quarter under review as against Rs 1,535.97 crore in the same period last fiscal.

    iii) The company has bagged deal worth USD 153 million in total contract value in Direct International business.

    Will also see participation from the Promoter in this buyback who has 52.36 percent shareholding.