NIIT BuyBack 2020
Established in 1981, NIIT Limited, a global leader in Skills and Talent Development, offers multi-disciplinary learning management and training delivery solutions to corporations, institutions, and individuals in over 40 countries. The company ranks among the world’s leading training companies owing to its vast, yet comprehensive array of talent development programs.
With a strong focus on assuming a leadership role in the Digital Learning World and to further accelerate NIIT’s growth and profitability, the company has charted a focused business strategy to address the Digital Transformation needs for individuals and corporate customers by offering training and consulting to help them re-invent themselves & their organizations.
Further, NIIT entered into a strategic partnership with UP! Your Service, the global leader in creating cultures of service excellence worldwide, to implement a culture of service excellence across organizations. The partnership with UP! Your Service is a strategic move to expand NIIT’s Corporate Learning portfolio to deliver internal and external cultures of Service Excellence. In addition to its cutting-edge Managed Training Services (MTS), NIIT will now offer services like Service Culture Indicator, Service Leader Workshops, and Service Excellence Workshops to take organizations to a new level of service that is enabled by fundamental principles and actionable models.
The Training.com learning platform is a pioneering initiative for advanced career programs, which are delivered live by industry experts in an immersive and interactive online mode, combining instructor-led classrooms with the convenience of accessing the training sessions from anywhere. The programs are targeted at working professionals who want to take their careers to the next level by enhancing their knowledge of the latest concepts through programs offered from premier institutes like IIM Calcutta, DMI Ireland, and edX.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Feb 24 2021 |
| Buyback Opening Date: | Apr 12 2021 |
| Buyback Closing Date: | Apr 28 2021 |
| Buyback Offer Amount: | ₹ 237 Crores |
| Date of Board Meeting approving the proposal: | Dec 24 2020 |
| Date of Public Announcement: | Dec 24 2020 |
| Buyback Offer Size: | 6.798% |
| Buyback Number of Shares: | 9,875,000 |
| Price Type: | Tender Offer |
| FV: | 2 |
| Buyback Price: | ₹ 240 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars(Cr) | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 |
| Sales | 953 | 1,002 | 845 | 850 | 865 | 889 |
| Expenses | 853 | 930 | 785 | 788 | 799 | 855 |
| Operating Profit | 100 | 72 | 60 | 62 | 66 | 34 |
| OPM % | 10% | 7% | 7% | 7% | 8% | 4% |
| Other Income | -142 | 8 | 74 | 84 | 104 | 1,429 |
| Interest | 17 | 24 | 28 | 22 | 23 | 20 |
| Depreciation | 107 | 49 | 46 | 40 | 33 | 60 |
| Profit before tax | -166 | 7 | 61 | 84 | 114 | 1,383 |
| Tax % | -1% | 50% | 30% | 24% | 24% | 4% |
| Net Profit | -139 | 67 | 41 | 62 | 86 | 1,327 |
| EPS in Rs | -8.39 | 4.06 | 2.47 | 3.75 | 5.17 | 93.81 |
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 | 1,65,767 | 1,65,767 | 1,65,767 | 1,65,767 |
| No. of Shares buyback | 249 | 416 | 624 | 833 |
| BuyBack Profit | 10209 | 17,056 | 25,584 | 34,153 |
| Profit | 6.1% | 10.2% | 15.4% | 20.6% |
Recommendation:
| Category | No.of Equity Shares reserved | No.of shares tendered | % AR |
| Reserved category for small shareholders | 14,81,250 | 48,64,682 | 30% |
| General Category | 83,93,750 | 4,53,05,260 | 18% |
76 Comments
Leave a Reply
You must be logged in to post a comment.
ER=88/800
AR=235/800
Have you got the money transferred in your account??
Yes. Yesterday.
*NIITLTD (500304) has accepted around 29% shares for its BUYBACK @ Rs. 240.*
*For HNI acceptance ration is around 13%.*
Have you got amount transferred in your account?
Confirmed Acceptance Ratio-29.50%
Subscribed 5.1 times. Now we have to wait for AR till 7th May I. e. Next Friday
Out of 100 only 11 is buyback shares so AR IS only 11%
11% is Entitlement Ratio (ER). Acceptance Ration (AR) will be equal to or more tha ER.
11% is Entitlement Ratio. Acceptance Ratio will be known only when we receive money i.e. on 07.05.2021
Please guide me as to how to check no. of shares offered daily.
Check here for BSE:
https://www.bseindia.com/markets/publicIssues/BSEDemandSchedule_otb.aspx?Scripcode=5400
Check here for NSE:
https://www1.nseindia.com/live_market/content/live_watch/tender_offer/tender_offer.htm
Entitlement ration for buyback of NIIT is 11% for retail investor. What can be acceptance ratio?
In last buy back, the amount was high and price low-AR 64%.
This time the amount is low and price high. We can expect AR around 40%. This is just assumption without any calculation.
Thanks
Buyback Opening Date Monday, April 12, 2021
Buyback Closing Date Wednesday, April 28, 2021
Last date of receipt of completed tender form and other specified document Friday, April 30, 2021by 5.00 p.m.
Last date of settlement of bids on the Stock Exchanges Friday, May 7, 2021
Last date of return of unaccepted Equity Shares by Stock Exchanges to Eligible Shareholder/Stock Broker Friday, May 7, 2021
Company has announced the buyback dates here – https://www.bseindia.com/xml-data/corpfiling/AttachLive/c8388c2f-dfc5-494d-856e-1385922c4861.pdf
NIIT is going down and down. Right now it is 141.25. Anybody any idea why?
MFs decreased their shareholding last quarter
Degrowth in Revenue and Profit
Promoter decreasing their shareholding
Declining Net Cash Flow
Companies not able to generate net cash
Major fall in TTM Net Profit Weak performer
Stock lost more than 20% in 1 month
Weak Momentum: Price below Short, Medium and Long Term Averages
SOURCE: MONEYCONTROL
Brokerages are giving sell ratings to this script since last two months
My call is to sell now and recover from a different trade, as the stock will touch 100 by next week. Technically this stock is weakest in S&P BSE SmallCap
jab company buy karna suru karegi to tab tak ye share upper nahi jayega
I feel the same, this seems like a trap and I hope people exit fast and not book losses.
Any News about start date?
Forum members, any update on the buyback dates?
I am also waiting for dates.
I don’t think they care about shareholders, they delayed the announcement of record date to a month, this is so disgraceful to giving back to the investors. I bought shares back in 2019, and now after this bad CORPORATE GOVERNANCE I sold yesterday with a profit of 80k, SEBI should have acted upon this unusual delay! MARKET IS TOO VOLATILE TO HOLD ON SELL NOW IF YOU BOUGHT FOR BUYBACK!
Goodluck Pals!
Yes and insiders exited recently, I assume there’s something wrong!
NIIT LTD : A CURSE?
Unfair Share Dilution in recent times.
Promoter decreasing their shareholding
Declining Net Cash Flow : Companies not able to generate net cash
Major fall in TTM Net Profit
When can we expect offer letter?
https://www.bseindia.com/stock-share-price/niit-ltd/niitltd/500304/corp-actions/
Record date 24/02/2021
Kediaji, Thanks.
Record date not updated in table
Source of record date? Nowhere seen.
Record Date 24/02/2021
Record date will be declared soon
when niit record date
NIIT in today’s Board Meeting neither declared dividend nor Buy Back record date. The results are very good.
Any news about record date?
Umesh sir what is expected ar of niit and ..if limited money available then which would you consider between nalco buyback and niit buyback with limited risk capability???
Bro fundamentally niit is better
If it cracks a bit say it comes to 185-190
Buy niit
Otherwise not much opportunity in both of these
As the reward is limited (10%) but risk is high(valuations are high currently)
Market is quite volatile
I have purchased a half quantity @Rs.190/-. I am waiting for the next target price of Rs. 180/- to buy the remaining half quantity as this is 33% lower than buyback price of 240 so the chances of it going below it is very less before record date. Kindly share your views
My view on NIIT is keep only 10% shares i.e. the expected entitlement ratio and sell 90% after record date.
Buy 1000 shares at current price ie 193. Assuming 900 shares are sold @193 after record date and 100 shares tendered @240 in buyback
So profit on investment of 193000 will be Rs4700
buying below 190 will be better to implement this strategy
If you tender 100 shares for buyback, only 10 will be accepted ?
No all 100 shares will be accepted
NIIT Ltd is 188 now. Is it a good idea to start buying slowly ? Only from buyback perspective?
I have purchased a small quantity @Rs.189/-. I am waiting for the next target price of Rs. 184/- to enter again. In my opinion, you may also purchase in three instalments at your expected prices depending upon your risk appetite. Thank you.
NIIT is coming in range now for buying….. Keep an eye….good to buy around 180 levels if market falls.
I request the authority concerned to make arrangements to open a separate page for discussion of GAIL buyback. Please do at the earliest.
GAIL buyback page is already available
Thank you, Ram Prasad ji. I missed to see to see it earlier.
It was stated that the price is high and one should wait for the price to fall below Rs.180 to enter into the scrip for the buy back. Date of public announcement for buy back was 24.12.2020 and on that date the share price closed at Rs.200.45 and till date the share price has touched a low of Rs.199.30 only once on 15.01.2021 when the Nifty has lost 1.11%. So there is a remote possibility of the price to fall below Rs.200 and reach a range of Rs.190-180 unless the market experiences high volatility.
Market wizard and Umesh Paliwalji and other senior members, please respond whether we can participate in the buy back with the present price range of Rs.199-203? Whether ER and AR will be like that of last year?
Last year, the buyback price was Rs.125/- and the amount of buyback was Rs.335 crores. Final AR for retail investors was 64%. Now, the buyback price is Rs.240/- and the amount of buyback is Rs.237 crores only. Final AR, as we fear, may be around 35% to 40% only. You may try your luck to purchase small quantities at the levels of Rs. 195, Rs. 190 and Rs. 185, if available before eligible date of purchase for Record Date. Other wise, there is no wrong in skipping. This is my personal opinion and you may take your own decision depending upon your risk appetite. Thank you.
Engineers India Limited buyback opens on Jan 22nd and closes on Feb 5th. Settlement date Feb 15th. AR hopefully would be more than 70%. Thanks.
last time 125 pe buyback huwa tha uske bad to ye share kya bhaga hai 206 tak aagaya abi 240 ka buyback
This query is out of Topic !!!
All members please advise on the buy back of INdian Toners & Developers as CMP is 135.20 and buyback price is 160
Record date is 15 January 2021
Any idea what is going to be the ER and AR
Should we take risk ???
market wizard any up comming buy back pls show new page & your valuable guidance archid play buy back announce 06/01/2021
Is the CMP good to enter for this buyback or can we expect downside in the near future?
Please advise guys.
Don’t enter now
Wait for it to come down
Acceptance will be low as buyback size is small
If I buy shares today, do I stand a chance to consider for buyback
Yes. If it is NIIT you are planning for buyback then you will be considered for buyback as the record date is not yet announced. As per recommendation of this site they are saying ya to wait until price reaches 185 but if you have done your study and want to spend more on buying the shares now then you are most welcome to do so.
The problem is you are not sure now how shares you buy will be taken back by NIIT.
So think before you leap!!!
https://www.bseindia.com/xml-data/corpfiling/AttachLive/9e1b0042-60f3-482b-9386-da9040474ad0.pdf
The Buyback is subject to the approval of the shareholders by passing a special resolution through postal ballot.
Umesh Saab could you please let me know the ER of EIL ?
Is it worth it to buy the shares @ 76 for buyback purpose ???
Thank you in advance 🙏🏾
The acceptance will be more than 60-70%
Only issue is that upside is limited 10%
While risk is considerable
Market could go down anytime as it’s richly valued right now
What about the opening date of the buyback
When will it be announced…Any idea
Let see if EIL will give gains and if market if is in bull mode then more gains !!!
This time Entitlement likely to be around 8% in comparision to last year ER of 21.6%.
Buyback size is also little small in terms of amount and significant less in terms of no. of shares (40%) to be buyback.
So, this time likely AR (for Retail) would be around 25% in comparision to last year AR of 62%.
Will promoters also participat. Acceptance ratio depends on this.
Bye back price 240rs
Pl update
NIIT Ltd – Buyback announced
buyback price : 240/- per share
buyback size : 237 crore rupees
buyback mode : Tender Route
Buyback size (No. of shares) : 98,75,000 shares
Retail Quota : 14,81,250 share
Thanks for the updates. What will be typical acceptance ratio and any chance market price to go up to 240.Thanks
Niit buyback @240
From where did you got this ?
NIIT 2019 Buyback.
Buyback price = 125, Buyback size = 335 Crores
1. Date of announcement of buyback = 10.08.2019, *price* = 98
2. Record date = 18.10.2019
*Price* = 84
3. Buyback date = 25.11.2019 to 06.12.2020
Price on 25.11.2019 = 104
Price on 06.12.2019 = 104.25
4. Final AR = 64% for small holders and 36%.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/67884480-9cf1-44b3-9e87-dfa5f169eebe.pdf
Last year buyback detail can be accessed at;
https://investorzone.in/buyback/niit-limited-buyback-2019/